Nepra raises Discos’ tariffs by 83 paisa per unit


ISLAMABAD: The National Electric Power Regulatory (Nepra) has increased tariffs of Distribution Companies (Discos) by Rs 0.83 per unit for 4th quarter of FY 2019-20 under quarterly tariff adjustment mechanism, second increase in two days. Another increase of Rs 1.95 per unit is also expected on Friday (today), totaling to a whopping impact of Rs 4.33 per unit.

Discos in line with the quarterly adjustment mechanism filed their adjustment requests on account of variation in PPP, including impact of T&D losses etc., for the 4th quarter of the FY 2019-20 i.e. from April to June 2020. Nepra conduced a public hearing on December 1, 2020 for this purpose.

According to the determination, Discos will recover Rs 84 billion from consumers on this account, to be recovered in one year’s time. Of this, Islamabad Electric Supply Company (Iesco) will recover Rs 7.750 billion, with an increase of Rs 0.666 per unit, Lahore Electric Supply Company (Lesco), Rs 10.092 billion- Rs 0.808 per unit increase, Gujranwala Electric Power Company (Gepco) Rs 8.939 billion- an increase of Rs 0.778 per unit) Faisalabad Electric Supply Company (Fesco), Rs 10.878 billion, Rs 0,778 per unit increase, Multan Electric Power Company (Mepco), Rs 15.147 billion, Rs 0.883 per unit increase, Peshawar Electric Supply Company (Pesco), Rs 10.886 billion, Rs 1.169 per unit, Hyderabad Electric Supply Company (Hesco), Rs 3.886 billion, Rs 0.855 per unit, Quetta Electric Supply Company (Qesco), Rs 4.450 billion, Rs 0. 818 per unit, Sukkur Electric Power Company (Sepco), Rs 4.177 billion, Rs 1.247 per unit and Tribal Areas Electric Supply Company (Tesco) Rs-( 562) million, with Rs 0.327 per unit reduction.

This amount will be recovered under the description of FCA impact on T&D losses, variable O&M, capacity charges and Market Operator fee. The amount of capacity charges for this quarter is Rs 86.208 billion.

The determination states that section 31(4) of the NEPRA Act, 1997 gives powers to the Authority to determine a uniform tariff, and further prescribes the manner, methodology and principles to be applied while determining it.

Accordingly, keeping in view the submissions made by MoE, in its letter of November 18, 2020 wherein reference has been made to the earlier motion filed by the Federal Government under Section 73 1(4) and 31(7) of the NEPRA Act 1997 read with Rule 17 of the NEPRA (Tariff Standards and Procedure) Rules, 1998 for recommendation of uniform consumer end tariff at national level and guidelines prescribed with regard to methodology for incorporation of quarterly adjustments in the uniform tariff of Discos, the Authority has determined a uniform rate of Rs.0.8276IkWh for the allowed amount of quarterly adjustments of Rs.84.037 billion pertaining to the 4th quarter of FY 2019-20, across each category of consumers of Discos, based on projected sales for the FY 2017-18, after excluding therefrom the sales to life line consumers, to be recovered in twelve month period, starting from the date of its notification.