Nepra hints at allowing XWDiscos to charge additional Rs46.28b from consumers

ISLAMABAD-National Electric Power Regulatory Authority (NEPRA) has indicated of allowing ex-Wapda Discos (XWDiscos) to charge an additional Rs46.28 billion from the consumers, including Rs31 billion on account of capacity charges to independent power producers (IPPs), on account of quarterly tariff adjustment (QTA) mechanism for the third quarter of FY 2023.
In a public hearing on the petitions of power distribution companies (XWDiscos), Nepra has noted that the increase in electricity tariff will be Rs 1.25 per unit and it will be recovered from the consumers. The hike will burden the power consumers with Rs 46.28 billion. A public hearing was presided by the NEPRA Authority comprising of Chairman NEPRA, Tauseef H. Farooqi, Member (Technical), Engr. Rafique Ahmad Shaikh, Member (Licensing), Engr. Maqsood Anwar Khan and Member (Law), Amina Ahmed. The XWDISCOs had requested an amount of Rs 44.46 billion on account of quarterly adjustment pertaining to 3rd Quarter of FY 2022-23 for XWDICSOs, however later it had upward revised it to Rs46.28 billion. The increase in electricity tariff works out to Rs 1.25 per unit, Nepra said. The allowed quarterly adjustment will be recovered on uniform basis from all consumers except for lifeline.
The Authority heard the petitioners and will decide the matter after due diligence and considering the comments of all stakeholders. Earlier, consumers were being charged an average of Re 0.47 per unit in the second quarter adjustment of FY 2022-23, which is applicable till June 2023, Nepra said.
From the July the new hike of Rs 1.25 per unit will replace the existing Re 0.47 per unit, allowed by the regulator on account of previous quarterly adjustments, and it will continue till September. This adjustment will be applicable to all DISCOS customers except lifeline customers, Nepra said adding that it will not apply to K-Electric consumers. Out of total additional Rs 46.28 billion, the consumers will pay Rs 31 billion on account of capacity charges.
The amount on account of capacity charges would go into pocket of independent power producers (IPPs) to pay for electricity which power distribution companies (Discos) had not injected in the national grid due to either system constraints or low demand of electricity.
As per the NEPRA official, Lesco consumers are going to pay Rs 9.3 billion on account of capacity charges. Gepco consumers will pay Rs 4.7 billion, Fesco Rs 8.3 billion, Mepco Rs 7.3 billion, Hesco Rs 3.9 billion, Qesco Rs 1.4 billion and Tesco Rs 3.157 billion. During the hearing, chairman Nepra had taken up the matter of lower consumption of electricity by Discos. The representatives of the XWDiscos said that the consumers used less electricity and therefore lower demand was result of capacity charges. The consumers are also going to pay Rs 4.18 billion on account of variable charges, Rs 544 million due to impact of losses and FCA and Rs 11.7 billion on account of UoSC and MoF. Nepra has reserved the judgment and it will release its detailed decision after further scrutiny of the data.

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