Power Division has reportedly submitted two options to the Economic Coordination Committee (ECC) for an informed decision on proposed increase of Rs 4.87 per unit in KE tariff comprising 11 quarters determined by Nepra, well-informed sources in KE told Business Recorder.
Giving the details, sources said, KE filed its monthly and quarterly adjustment on May 27 2019 for Power Purchase Price (PPP) indexation of O&M costs, and adjustment of T&D losses etc for eleven quarters from July 2016 to March 2019.
Subsequently, Nepra on December 31, 2019 determined the revenue requirement of KE for such quarters and accordingly recommended rate for each category of consumer per the schedule of tariff eleven quarters beginning from October-December 2016 and ending on April-June 2019. It is evident that during this period various proceedings were pending with Nepra.
The QTA decision of eleven quarters by Nepra evidently updates the revenue requirement of KE up to March 2019 and accounts for shortfall or over recovery during each quarter from July 2016 to March 2019. It is further evident that for such period QTA decision of eleven quarters has taken the base values specified in KE notified tariff of May 22, 2019, wherein during the period SRO No. 571(1)2016 of June 27, 2016 remained in field and accordingly subsidy claims were also made by KE and were processed by the government. Accordingly, it is evident that for such period reconciliation of such claims.
Similarly, it is also evident that in view of the QTA decision of 11 quarters, the revenue requirement of KE has been actualized up to quarter ending March 2019, reflected in the latest schedule of tariff for April-June 2019 recommended by Nepra which had recommended Rs 4.87 per unit for each category.
Power Division has also pointed out that the currently on account on the provisions of the Nepra Act and applicable policies as well as guidelines developed thereunder, uniform tariff for each category of consumer for Discos is applicable pursuant to various determinations of Nepra from time to time. KE notified tariff was also accordingly aligned. Subsequently, thereto, Nepra determined quarterly adjustments in June 2019, September and December 2019 for consumers of Discos. Consequently, currently a consolidated uniform rate within the range of Rs 1.09 to Rs 2.89 per unit is being charged for various consumers of Discos while also maintaining the socio-economic objectives for specified category of consumers.
After explaining the history, Power Division has submitted the following recommendations for the ECC;(i) QTA decision of 11 quarters be notified as recommended by Nepra which would result in subsidy claim of around Rs 71 billion up to March 2019 and from the date of notification for next 12 months the additional estimated subsidy would be Rs 28 billion or ;(ii) the recommended quarterly adjustment to the tune of Rs 4.87 per unit being the differential between the schedule of tariff recommended by Nepra for April-June 2019 and schedule tariff earlier recommended by Nepra and reflected in the KE notified tariff, be notified for each category of consumer, as is currently in field for consumers of Discos.
Any difference between the two rates be made available by way of subsidy, which shall amount to Rs 26 billion only. To the extent of earlier quarters, KE be intimated to file its revised claim to Nepra for such quarterly adjustments after reflected subsidy claims already processed pursuant to SRO No. 571(1)2016 which has not been accounted for in the current determination and incremental rates for such adjustments be sought so that any such revenue requirement is recovered prospectively to any further subsidy (if any) as may be done available on uniform basis.
Comments
Comments are closed.