Nepra notifies Re0.99 per unit cut in power tariff for XWDiscos

Quarterly adjustment for 4th quarter of 2020-21

ISLAMABAD - National Electric Power Regulatory Authority (Nepra) on Thursday notified reduction of Re 0.99/unit in power tariff for XWDiscos on account of quarterly adjustment for the 4th quarter of 2020-21.
The Authority has determined a negative uniform rate of Rs.0.9908/unit, as mentioned, and allowed negative amount of quarterly adjustments of Rs.22,479 million pertaining to the 4th quarter of the FY 2020-21, across each category of consumers of XWDISCOs (except lifeline and protected category consumers), based on notified projected sales, after excluding there from the sales to life line and protected category consumers, said a notification issued here by NEPRA. Based on the information submitted by CPPA-G, adjustment requests filed by XWDISCOs and keeping in view the adjustments, the amount of quarterly adjustment for the 4th Quarter of FY 2020-2 1 has been worked out as negative on account of variation in capacity charges, variable O&M, use of system charges, market operator fee and FCA impact on T&D losses, CPPA-G had provided the information for the 4th quarter of the FY 2020-21 i.e. April to June 2021.
CPPA-G, in the costs billed to DISCOs for the 4th quarter of the FY 2020-21, has included legal charges of Rs.31.8 million as part of capacity charges. Nepra said that it had decided not to include the amount of legal charges in the instant quarterly adjustments. The Authority accordingly had determined the impact of 4th quarterly adjustment on uniform basis, which shall be reflected in the monthly bills of consumers of all XWDISCOs. Any excess /less adjustment would be settled between XWDISCOs at CPPA-G level. The relief to consumers will last for three months period with effect from February 1, 2022.
The Nepra further pointed out that the Authority in its decision taken on December 1, 2020, in the matter of motion filed by the Ministry of Energy (Power Division) with respect to recommendations of support package for additional consumption and abolishment of Time of Use Tariff Scheme for industrial consumers of XWDISCOs, decided that no quarterly adjustments would be passed on to B1, B2, B3 and B4 industrial consumers to the extent of incremental sales till continuation of the instant package.
The Authority determined tariff for XWDiscos for the FY 2018-19 & FY 2019-20, individually under the Single Year Tariff Regime (SYT). For XWDiscos under the Multi Year Tariff (MYT) regime, i.e. FESCO, LESCO and IESCO, the Authority as per the mechanism prescribed in their MYT determinations issued decision regarding adjustment in tariff component for the FY 2019- 20.

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