Variation in Power Purchase Price: Government seeks 17 paisa/unit increase in tariff of Discos

The federal government has sought 17 paisa per unit increase in tariff of power Distribution Companies to collect additional Rs 17.204 billion from consumers on account of variation in Power Purchase Price (PPP) for the quarter July to September 2019

The government agreement with the International Monetary Fund (IMF) stipulates that electricity tariff be adjusted each quarter and the inefficiencies and other expenditures be passed onto the consumers.

National Electric Power Regulatory Authority (Nepra) has fixed November 20, 2019 to hear the petition of CPPA-G's tariff prepared on behalf of Discos.

According to the petition, Iesco has sought adjustment of Rs 1.445 billion on account of capacity purchase price, UoSC & MoF, impact of T&D losses on monthly FCA, and variable O&M; Lesco Rs 5.052 billion, Gepco, Rs 1.536 billion, Fesco, Rs 946 million, Mepco, Rs 2.215 billion, Pesco Rs 3.669 billion (including FCA component of Rs 3.512) billion, Hesco, Rs 2.506 billion, Qesco Rs 1.529 billion, Sepco, Rs 1.190 billion and Tesco, Rs 991 million.

An official told Business Recorder that an increase of 17 paisa per unit in tariff on account of quarterly adjustment is expected to be notified in December 2019.

A couple of months ago the government increased power tariff by 53 paisa per unit to recover Rs 120 billion from consumers including to recover around Rs 63 billion from power consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate. The regulator allowed around Rs 33.5 billion under quarterly adjustment and Rs19.77 billion interim relief to Discos.

Copyright Business Recorder, 2019