Nepra hints at Re0.50/unit hike in power tariff

2nd quarterly adjustment for fiscal year 2022-23

ISLAMABAD-National Electric Power Regulatory Authority (Nepra) on Wednesday hinted at an increase of Re0.50 per unit in power tariff on account of 2nd quarterly adjustment for fiscal year 2022-23.
Nepra conducted a public hearing to consider increase in tariff for second quarter adjustment of DISCOs for fiscal year 2022-23. Chairman NEPRA Engineer Taseef H. Farooqui chaired the hearing while Nepra members, Engineer Maqsood Anwar Khan, Muthar Niaz Rana and Amna Ahmed were also present in the hearing.
DISCOs had filed a petition to recover Rs 17.391 billion from the consumers for quarterly adjustment. The power companies had filed petitions to recover multibillion rupees from consumers on account of capacity charges, transmission charges & MOF, variable O & M charges and impact of T&D losses on FCA for 2nd quarter of FY2022-23. Out of total Rs 17.39b, independent power producers (IPPs) would receive an amount of Rs 1.19b from consumers of Fesco, Rs3.9b Gepco, and Rs 2.06b from Lesco consumers as capacity charges. Interestingly, Iesco, Mepco,Pesco and Sepco showed negative of Rs14b in capacity payments, which means that to control their losses these Discos resorted to forced loadshedding and didn’t provide required electricity to consumers. 
This huge amount would be paid to those IPPs that had been idle and did not operate. Chairman NEPRA said that Pesco’s capacity charges are in the negative, which is matter of concern. Consumers of Pesco had also complained about forced loadshedding, he added. He said that you didn’t do any good by not utilizing the availability electricity as the government is paying capacity for the installed capacity. It’s a share waste, he added. You have failed to meet the MDI. This is very negative, we have paid the capacity but the electricity was not utilized, he said. Pesco is saying that it is not using the full electricity, so there is a mess somewhere, Chairman Nepra said. He said that Independent Power Producers (IPPs) were receiving money on account of capacity payment. 
The hearing was informed that against the PESCO demand of 2100MW the company was provided 1350MW electricity from the national grid, while it had supplied 1200MW to its consumers. PESCO is among the worst performing Discos of the country. The consumers were not being provided electricity and they were facing forced loadshedding. Member NEPRA Khyber Pakhtunkhwa, Engineer Maqsood Anwar Khan said that you (PESCO) cannot control losses and instead resorted to forced loadshedding. What an easy solution you have found, Maqsood Anwar Khan said while pointing towards PESCO. 
Nepra has sought a detailed report from PESCO and other Discos on non-utilization of electricity to full capacity. Earlier, consumers were being charged an average of Rs 3.08 per unit for the 1st quarter adjustment of FY2022-23, which is applicable till March 2023, Nepra said. This adjustment will be applicable to all DISCOS consumers except lifeline and K-electric consumers. Nepra said that increase in tariff will be recovered from the power consumers in months of April, May and June 2023. However, Power Division requested the power regulator to immediately pass on increase in tariff to the consumers without any delay. Nepra said that consumers were already paying Rs 3.08 per unit on account of quarterly adjustment. The regulator has expressed displeasure at the performance of electricity distribution companies (Discos).
The power regulator had also received an application from Power Division to impose additional surcharge of Rs 3.39 per unit on the power consumers who were already paying bills. The difference in transmission charges adjustment has been higher in this quarter which Rs 28.496b, Chairman Nepra said. He said that had transmission charges adjustment not been there, the amount of Rs 11 billion would have been reduced. According the regulator Disocs will pass on the increase to the consumers in the electricity bills for the months of April, May and June, Nepra said. However, Power Division had demanded that increase in electricity rates be increased during the months of March, April and May 2023. Nepra said that it would issue its detailed decision after further scrutiny of the data.

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