Discos may be allowed to collect Rs180bn from consumers

ISLAMABAD: National Electric Power Regulatory Authority on Friday hinted to allow power Distribution Companies (Discos) to collect Rs 180 billion from consumers under the head of Prior Year Adjustment (PYA) of Power Purchase Price (PPP) for fiscal year 2017-18 (four quarters) .

The decision was taken at a public hearing presided over by Chairman Nepra Brig. Tariq Saddozai (retired) flanked by Member Punjab, Saif Ullah Chatha and Member Balochistan Rahmat Ullah Baloch. The Authority determined consumer end tariff of Gepco, Mepco, Pesco, Hesco, Sepco and Qesco for 2015-16 which was notified by the federal government on March 22, 2018. The notified determinations provide mechanism for quarterly adjustments on account of Power Purchase Price. The Nepra also determined tariff of Gepco, Mepco, Pesco, Hesco, Sepco and Qesco for the FY 2017-18, which was intimated to the federal government for notification. Considering the fact that FY 2017-18 has lapsed; the Authority further decided to consider the impact of Prior Year Adjustment (PYA) in the proceedings. Six Discos have sought PYA against capacity payments, O&M, use of system charges and T&D losses which are other than the fuel component. Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco), Faisalabad Electric Supply Company (Fesco), have already been allowed PYA recently.

On Friday, Nepra briefly heard PYA requests of eight power Distribution Companies. The representative of Peshawar Electric Supply Company (Pesco) sought PYA of Rs 17.839 billion, Multan Electric Power Company (Mepco) Rs 23.50 billion, Hyderabad Electric Supply Company (Hesco) Rs 15.453 billion, Sukkur Electric Supply Company (Sepco) Rs 6.158 billion, Gujranwala Electric Power Company (Gepco) Rs 10.464 billion and Quetta Electric Supply Company (Qesco) Rs 9.9 billion.

On query of Chairman Nepra about adjustment of two quarters in annual tariffs, a senior official clarified that tariff determinations have already been sent to the federal government in July 2018 for notification.

A representative of Pesco requested Nepra to determine the company’s PYA separately and delink it from regular tariff, adding that Ministry is evolving such a mechanism. However, Chairman Nepra turned down his request, saying that it was not allowed in the law.

Chairman Nepra argued that PYA would be notified in the tariff, adding that one company can not be allowed this mechanism as any such precedent will deteriorate the analogy of similar tariff across the country. He further stated that Discos could only charge Fuel Price Adjustment (FPA) directly from the consumers. Nepra gives PYA adjustment quarterly in accordance with its own guidelines.

An official told this correspondent that Nepra would work vigorously to finalise PYA as early as possible so that it could be notified at earliest. —MUSHTAQ GHUMMAN