ISLAMABAD: The government has not enhanced peak hours for electricity consumers in the country as it is neither mentioned in Discos’ tariff determinations recently issued by the Nepra nor is it in the plan of authorities, well informed sources told Business Recorder.
There were speculations in social media that the government has enhanced peak hours’ duration by two hours along with the increase in basic electricity tariff by Rs 4.96 per unit across the board from July 1, 2023, which attracted considerable criticism from the public. The overall financial impact or rebasing will be of Rs 477 billion.
The sources said total revenue requirement for the CFY 2023-24 would be 3,281,162 million (Rs 3.281 trillion), cost of which is Rs 29.78 per unit.
KE, Discos: Nepra approves negative tariff adjustments
This implies the government had to increase base tariff by Rs 4.96 per unit to raise current base tariff of Rs 24.82 per unit to Rs 29.78 per unit from July 1, 2023.
The sources said consultations on notification and adjustment of subsidy’s amount of Rs 148 billion for the vulnerable consumers in the rebased tariff are in progress. Prime Minister Shehbaz Sharif and Finance minister have been briefed on proposed eight scenarios.
“We hope, consensus will be evolved on the categories of domestic consumers and its financial impact will be finalized in a day or two,” the sources said, adding that the Power Division is waiting for approval of summary on rebasing from the Prime Minister and Finance Minister, a summary that will be approved by the Cabinet. The Nepra is also being consulted on the projections made in the determination.
However, insiders claimed that Prime Minister Shehbaz Sharif has already approved rebasing as per decision of the Nepra.
The tariff of some categories of consumers will increase over and above the determined tariff as adjustment of subsidies to other vulnerable categories.
According to sources, as Power Division gets the Cabinets’ approval on rebasing and other formalities are completed, federal government will file a Motion to the Nepra to adjust Rs 148 billion subsidy in Schedule of Tariff (SoT) which implies tariff of other categories will be altered.
Subsequently, the Nepra is expected to hold a public hearing for form’s sake as it cannot reject government’s subsidy adjustment plan.
The sources however, claim that since effective tariff is already Rs 29.78 per unit including QTAs, the new rebasing will add about Rs 2 or Rs 2.5 per unit on their bills.
Copyright Business Recorder, 2023