XWDiscos seek Nepra’s nod for passing on burden of addl Rs144.68b to consumers on account of QTA

ISLAMABAD-Ex-WAPDA distribution companies (XWDiscos) have sought NEPRA’s nod for passing on the burden of additional Rs144.68 billion, including Rs122.413 billion on account of capacity charges, to power consumers on account of quarterly tariff adjustment (QTA) mechanism for the 4th quarter of FY 2023.
The increase of Rs144.688 billion was sought by the XWDiscos on account of capacity charges, market operator fee, the impact of additional sales under incremental sales incentive scheme for industrial sector, the use of system charges, transmission and distribution losses on account of fuel coast adjustment, variable operation and maintenance charges for the third quarter of ongoing fiscal year.
In the petition filed with the NEPRA, the XWDiscos have demanded Rs122.413 billion on account of capacity charges and Rs14.349 billion on account of UoSC and MoF for quarterly tariff adjustment (QTA) mechanism for the fourth quarter (April – June 2023). Allowing Rs144.688 billion to the XWDiscos is estimated to have an overall impact of around Rs5 per unit on the power consumers. The increase will be applicable for three months. As per the petitions, the highest demand for the quarterly adjustment of Rs31.877 billion was made by Lahore Electric Supply Company (LESCO) followed by Rs27.286 billion by Multan Electric Power Company (MEPCO), Rs23.491 billion by Faisalabad Electric (FESCO) and Rs16.39 billion by Gujranwala Electric Power Company (GEPCO). Similarly, Islamabad Electric Supply Company (IESCO) sought an additional QTA of Rs9.891 billion, Peshawar Electric Supply Company (PESCO) Rs8.883 billion, Hyderabad Electric Supply Company (HESCO) Rs9.328 billion, Rs7.582 billion by Quetta Electric Supply Company (QESCO), Rs5.195 billion Sukkur Electric Power Company (SEPCO), and Rs4.016 billion by Tribal Areas Electric Supply Company (TESCO). 
Among the Discos, the capacity payments of the Punjab based distribution companies are the highest. LESCO has sought NEPRA nod for transferring the burden of Rs28.906 billion to consumers on account of capacity payments, followed by MEPCO with Rs22.659 billion, FESCO Rs21.170 billion, GEPCO Rs13.891 billion. IESCO has sought NEPRA approval for the transfer of Rs8.024 billion, HESCO Rs7.554 billion, PESCO Rs6.794 billion, QESCO Rs6.042 billion, SEPCO Rs3.904 billion and TESCO Rs3.469 billion to consumers on account of capacity charges. Similarly, Discos have also sought the transfer of Rs7.352 billion on account of impact of Transmission and Distribution losses for the fourth quarter of the previous fiscal year 2022-23. NEPRA will hold public hearing on the petitions of Ex-Wapda Discos on August 23, 2023.

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