Q4FY24 adjustment: Tariffs of Discos, KE raised by Rs1.74/unit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased tariffs of Discos and K-Electric (KE) by Rs 1.74 per unit to recover additional amount of Rs 43.230 billion from consumers for fourth quarter of FY 2023-24 to be recovered in the bills of September to November 2024.

The hearing was attended by the Ministry of Energy, Power Division, Discos, CPPA-G, K-Electric and other stakeholders including general public and media.

According to the Nepra in pursuance of Proviso (ii) to Sub-Section 7 of Section 31 of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (XL of 1997), it notified complete decision of the Authority in the matter of requests filed by Discos for periodic adjustment in tariff for the 4th quarter of FY 2023-24 already intimated to the Power Division on September 06, 2024.

Accordingly, the Authority decided to allow the positive quarterly adjustments of Rs.43.230 billion pertaining to the 4th quarter of the FY 2023-24, in a period of three months i.e. September to November 2024, at a uniform rate of Rs. I.7432/kWh, to be applicable to all consumer categories, except lifeline consumers and prepaid consumers.

Consumers’ recommendation, Discos, KE tariff: PD submits addendum to Nepra

The Authority decided to allow the application of instant quarterly adjustments on the consumers of K-Electric as well, with the same applicability period. Accordingly, the instant quarterly adjustment of Rs. 1.7432/kWh shall also be charged from the consumers of K-Electric except life line and prepaid consumers, to be recovered in a period of 3 months, ie, September to November 2024.

GPPA-G also requested to allow Rs.51 million on account of legal charges in the instant quarterly adjustment. GPPA-G submitted that it is engaged in local and international legal proceedings in its capacity as agent of Discos, and the litigation charges incurred by CPPA-G on behalf of Discos are passed on to Discos in accordance with the Article- III of Power Procurement Agency Agreement (PPAA) between CPPA-G and Discos dated June 03, 2015.

The Authority observed that in CPPA-G’s Market Operation Fee determination, CPPA-G was directed to include such costs as part of its Market Operator Fee (MoF). The Authority has already approved an amount of Rs.500 million, on account of legal charges as part of CPPA-G MoF for the FY 2023-24. In view thereof, legal charges of Rs.51 million have not been considered while working out instant quarterly adjustment and would be considered as part of CPPA-G MoF petition.

CPPA-G in its plant wise data has also included an amount of Rs.72.23 million on account of KAPCO charges. CPPA-G submitted that the amount on account of tax differential for the period from July,22 to Oct 24,2022 is covered under Clause 6.7 and 6.15 (a) of Schedule 6 to the PPA. The period falls under the Financial Year ending Jun 30, 2023. The Authority for the purpose of working out the quarterly adjustment, has decided not to consider the amount of Rs.72.23 million claimed for KAPCO.

Copyright Business Recorder, 2024