MYT mechanism: Three Discos’ average base tariff jacked up for 5 years

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has increased average base tariff of three power Distribution Companies (Discos) to Rs 30.18 per unit from Rs 29.78 per unit for five years, ie, FY 2023-24 to FY 2027-28 under Multi-Year Tariff (MYT) mechanism.

The three Discos i.e. Islamabad Electric Supply Company (IESC), Faisalabad Electric Supply Company (FESCO) and Lahore Electric Supply Company (LESC) were earlier allowed interim tariff while rebasing of consumer-end tariff of FY 2023-24, and same was notified from July 01, 2023, subject to adjustment after final determination as next financial year is near starting enabling to pass on the cost to its consumers on timely basis.

Under the MYT mechanism, NEPRA has allowed revenue requirement of Rs 299.919 billion to IESCO at a tariff of Rs 25.12 per unit, LESCO, Rs 652.944 billion at rate of Rs 28.43 per unit and FESCO, Rs 445.784 billion at base tariff of Rs 28.79 per unit.

Nepra approves multi-year tariffs for three Discos

Earlier, for an interim period, IESCO was allowed revenue requirement of Rs 296.283 billion at Rs 24.86 per unit, LESCO, Rs 627.968 billion at rate of Rs 27.34 per unit and FESCO Rs 430.330 billion at a tariff of Rs 27.80 per unit.

The final determination released by NEPRA indicated that revenue requirement of IESCO has been increased by Rs 3.096 billion with an increase of paisa 26 per unit in already determined tariff, LESCO, Rs 24.976 billion with an increase of Rs 1.09 per unit and FESCO Rs 15.454 billion with an increase of Rs. 1 per unit in its interim base tariff.

The difference in interim tariff and revised revenue as per determinations would be made part of Prior Year Adjustment (PYA) in subsequent rebasing of tariff for FY 2024-25.

Copyright Business Recorder, 2024