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Print Print 2024-03-26

10 Discos seek Rs2.765trn tariff adjustment

  • Requested adjustments are on account of O&M costs, currency depreciation, Return on Rate base, Gross Margin, less; other income, net margin and Prior Year Adjustment
Published March 26, 2024

ISLAMABAD: The country’s 10 power Distribution Companies (Discos) have approached the National Electric Power Regulatory Authority (NEPRA) to further burden consumers with Rs 2.765 trillion for adjustment/indexation of different tariff components of tariff for the year 2024-25 multi-Year Tariff (MYT) components.

According to the petitions filed with the National Electric Power Regulatory Authority (NEPRA), Lahore Electric Supply Company (LESCO) has sought adjustment of Rs 852.047 billion, Faisalabad Electric Supply Company (FESCO) has sought Rs 501.481 billion, Islamabad Electric Supply Company (IESCO) Rs 400.484 billion, Quetta Electric Supply Company (QESCO) has submitted revenue requirement of Rs 236.945 billion, Gujranwala Electric Power Company (GEPCO), Rs 376.204 billion at tariff rate of Rs 3.31 per unit, Multan Electric Power Company (MEPCO), Rs 160.823 billion, Tribal Areas Electric Supply Company (TESCO), Rs 92.079 billion, Sukkur Electric Supply Company, Rs 35.796 billion and Peshawar Electric Supply Company (Pesco) Rs 67.244 billion. The main cost is on account of Power Purchase Price (PPP).

Private sector’s participation in Discos: IFC in talks with Power Division

The requested adjustments are on account of O&M costs, currency depreciation, Return on Rate base, Gross Margin, less; other income, net margin and Prior Year Adjustment. The estimates are based on distribution business and power supply business. Some of the companies have also sought adjustment in pay and allowances of their employees.

Nepra is scheduled to conduct public hearings on the petitions of Discos in the first week of April 2024, ie, April 2, 3, 4, 2024 and has asked all the interested/affected parties to submit written/ oral comments or objections as permissible under the law at the hearing.

Nepra wants to approve new tariffs of Discos in April or maximum in May so that Power Division may seek approvals of Law Ministry and subsequently Federal Cabinet.

Power Division, sources said, has also pledged to the IMF that tariffs of Discos will be applicable from July 2024.

The IMF has requested the government to continue with the timely implementation of power and gas tariff adjustments to keep average tariffs consistent with cost recovery while protecting the vulnerable through the existing progressive tariff structures, thus avoiding any net Circular Debt (CD) accumulation in FY24.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Builder Mar 26, 2024 05:35am
Welcome to the reality! I guess people should now start thinking about totally going off-grid.
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KU Mar 26, 2024 08:14am
What the hell is indexation/adjustment of different tariff components? Is there still any doubt about theft and mismanagement?
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Khan Mar 26, 2024 09:36am
What does it means to the end user, poorly written, just figures but doesn’t mention the overall price impact
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M.amin malik Mar 26, 2024 12:07pm
@Builder, if we totally go off grid, still we will have to pay elephants for their idle time charges.
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Qamar Aftab Mar 26, 2024 12:26pm
Known Musadaq for 30 years; his visionary leadership has significantly propelled Interloop forward. A true friend and mentor, inspiring and deeply ethical, he's reshaped the industry profoundly.
thumb_up Recommended (0)
Gulfam Hussain Mar 26, 2024 12:49pm
I need a bike
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Mubashir Munir Mar 26, 2024 01:19pm
Why not cancel all the contracts of IPPS and revise.we should terminate all the bureaucrats responsible for wrong contracts terminated all the perks of officials hire them on contracts
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Mubashir Munir Mar 26, 2024 01:22pm
@M.amin malik, the pensions of officials and all the benefits of all government officials civil servants be terminated forthwith
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Test Mar 26, 2024 01:45pm
@KU, 2700 billion we have to pay need to pay more money
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KU Mar 26, 2024 02:08pm
@Gulfam Hussain , everyone needs a bike now, mostly to run away somewhere.
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Khurshid A Khan Mar 27, 2024 06:51am
I could not comprehend why HESCO is not in the list of Power Distribution Companies seeking tariff adjustment funds to balance its books or as they are calling it here
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