ISLAMABAD - National Electric Power Regulatory (NEPRA) has approved another increase in power tariff and allowed Ex-Wapda Discos (XWDiscos) to charge an additional Rs 1.5547 per unit from its consumers on account of periodic adjustment for the second quarter of ongoing fiscal year.

In its decision on the petition filed by XWDiscos in the matter of periodic adjustment on account of variation in capacity charges, variable O&M, use of system charges, Market Operator Fee and Fuel Charges Adjustments (FCA), impact of T&D losses for the 2nd quarter of 2021-22, NEPRA has allowed the power distribution companies to collect an additional Rs 39bn from the consumers in next three months (July1, to September 1).

The allowed quarterly adjustment has an impact of around Rs.1.5547/kWh on uniform basis on all consumers except for lifeline & Increment Industrial Sales eligible for Industrial Support Package. For XWDISCOs under the Multi Year Tariff (MYT) regime the Authority issued decision regarding adjustment in tariff component for the FY 2019- 20. XWDISCOs, in line with the prescribed quarterly adjustment mechanism, have filed their adjustment requests on account of variation in PPP, including impact of T&D losses etc., for the 2nd quarter of the FY 202 1-22 i.e. from October to December 2021. NEPRA had conducted public hearing on the Discos petition on April 28, 2022.

The regulator has decided to work out the quarterly adjustment based on net units, i.e. units purchased for incremental sales have not been included while working out the quarterly adjustments. Accordingly, the cost recovered on incremental units over and above the fuel cost i.e. (Rs.12.96 less Reference Fuel Cost for each month) has been adjusted from the quarterly adjustments worked out based on net units. Similarly the Prior Year Adjustment (PYA) as well as sales mix for the period would be worked out based on net units i.e. excluding units purchased for incremental sales. Thus, no further adjustment would be allowed for units purchased for incremental sales. The CPPA-G in the costs billed to DISCOs for the 2nd quarter of the FY 202 1-22 has included legal charges of Rs.5.4 million as part of capacity charges which was not considered by the regulator.

The CPPA-G in its data has included an amount of Rs.1. 95b on account of capacity charges of KAPCO. The Authority noted that KAPCO’s PPA was amended by CPPAG, wherein it has been agreed that plant will be operated without payment of capacity charges from July 2021 onward and only energy charges would be paid. However, the Authority has decided to provisionally withheld the claimed amount of KAPCO and would considers the same, in the subsequent quarterly adjustments, once it is verified

The Authority has determined a positive uniform rate of Rs.1.5547/kWh, having an impact of Rs.39.001b pertaining to the 2”’ quarter of the FY 2021-22, across each category of consumers of XWDISCOs (except lifeline consumers), based on notified projected sales, after excluding there from the sales to life line consumers, to be recovered in three (03) months period, w.e.f. 01.07.2022. The Authority has decided to apply the same w.e.f July 01, 2022, to be recovered within three months period from the date of notification.