ISLAMABAD       -         National Electric Power Regulatory is all set to allow ex-WAPDA Discos (XWDiscos) to transfer the burden of Rs 43 billion to electricity consumers on account of quarterly adjustment. In a public hearing, on XWDiscos petition for hike in tariff on account of quarterly adjustment for the 1st quarter (July to September) of FY2022-23, presided over by Chairman NEPRA, Tauseef.H.Farooqui, official of Power Division informed that the circular debt of power sector has increased by Rs 185 billion during the 1st quarter of 2022-23. Chairman NEPRA said that the amount of Rs 43b claimed by the Discos is too much and added that “We thought that after the rebasing of the electricity tariff, the quarterly adjustment amount will be reduced.” The hearing was also attended by its members Engineer Rafiq Ahmed Sheikh and Engineer Maqsood Anwar Khan. In case of NEPRA’s approval, the electricity consumers will pay an additional Rs 2.18/unit for two months on account of quarterly adjustment for financial year 2022-23. The hearing was informed that the quarterly adjustments claimes of the XWDiscos have showed an increase of 207pc in comparison with the same quarter of previous fiscal year 2021-22. During the 1st quarter of 2021-22, the quarterly adjustment claimed by Discos was Rs 14b, while it has climbed to Rs 43b during the 1st quarter of ongoing fiscal year, it was informed. NEPRA authorities informed that during the previous financial year, Rs 161b were approved on account of quarterly adjustments by the regulator. Out of Rs 161b, Rs 140b was transferred to consumers, the rest was accumulated in the circular debt. Chairman NEPRA said that the authority is also very worried regarding Rs 43b claimed by the distribution companies, on account of quarterly adjustment, which is too much increase. However, he said that due to floods, the sales of discos have fallen and the recoveries have also remained low. Member Sindh Nepra Rafiq Sheikh said that if the performance of the Discos continues like this, the situation will get worse. It is also alarming that consumers were going to pay over Rs 31b on account of capacity payment in one quarter. In petition, power distribution companies had pleaded to allow increase in electricity rates on account of quarterly adjustment to recover Rs 43.337b from the electricity consumers, Nepra said. Ministry of Power has requested to implement quarterly adjustment for two months of February and March, Nepra said. Nepra further said that consumers were being charged Rs 3.30/unit for the 4th quarter adjustment of FY2021-22, which is effective till January 2023. In case of recovery of quarterly adjustments in two months, the customer will pay only the previous adjustment, Nepra said. “If authority approves the proposed increase, it amounts to Rs 2.18 per unit, Nepra official said. In its petition submitted to NEPRA, XWDiscos had demanded an increase on account of capacity charges, transmission charges and market operation fee, impact of T&D losses on FCA and variable operation and maintenance charges for the 1st quarter of FY 2022-23 (July to September 2022). According to Discos petition, Iesco had sought positive adjustment of Rs2.704b, Lesco Rs 9.101b, Gepco Rs5.337b, Fesco Rs6.377b, Mepco Rs 10.657b, Pesco Rs 2.129b, Hesco Rs 1.184b, Qesco Rs 3.663b, Sepco Rs 905 million and Tesco Rs 1.282b respectively. XWDiscos had sought Rs31b on account of capacity charges, Rs6.431b on account of UOSC & MOF, variable O&M Rs 2.169b, Rs7.408b on account of T&D losses in monthly FCA and negative adjustment of Rs 4.248b of incremental units. Nepra has reserved the judgment and will issue its detailed decision after further scrutiny of the data.