ISLAMABAD    -   NEPRA yesterday allowed XWDISCOs an increase of Rs1.6 per unit under the quarterly adjustments for the 2nd and 3rd quarters of 2019-20 which will enable the distribution companies to collect Rs.164.870 billion from the power consumers within next one year.

However, NEPRA spokesman asserted that the new quarterly adjustments are for the 2nd and 3rd quarters of FY 2019-20 having average impact of Rs.1.62/kWh and these adjustments shall replace the already notified quarterly adjustments of Rs.0.93/kWh (average) pertaining to the 1st and 2nd quarters of FY 2018-19 and Rs.0.33/kWh (average) pertaining to the 3rd and 4th quarters of FY 2018-19 and Rs.0.20/kWh Interim DM for FY 2018-19, which all shall expire on September 30, 2020. Thus, the existing consumer end will be maintained to a greater extent.

The decision will deprive the consumers of possible relief in their monthly bills.

In its order, NERPRA said that the authority has determined a uniform rate of Rs.1.6236/kWh with the instant decision, for the allowed amount of quarterly adjustments of Rs.73,065 million pertaining to the 2nd quarter and Rs.91,805 million for the 3rd quarter of FY 2019-20 (total Rs.164,870 million), across each category of consumers of XWDISCOs,  said a NEPRA order issued here.

Since, through amendment in NEPRA Act, the power to impose surcharges by the federal government has been removed, therefore, the federal government shall not rationalize the allowed uniform rate of Rs.1.6236/kW}i upwards for any consumer category.

The Ministry of Energy (Power Division), in the meantime, vide letter dated July 22, 2020, while referring to its earlier letter dated November 13, 2019, wherein the Ministry made a reference to its earlier motion dated November 09, 2018, regarding recommendation of uniform consumer end tariff, and Federal Government Guidelines dated April 18, 2019, with regard to Methodology for incorporation of Quarterly Adjustments in the Uniform Tariff of DISCOs in terms of NEPRA Act, filed a consolidated quarterly adjustment request on behalf of all XWDISCOs by attaching therewith the individual quarterly adjustment requests of XWDISCO for both the quarters. The Ministry requested that the impact of 2nd and 3rd quarters of FY 20 19-20, as requested by XWDISCOs, on uniform basis may immediately be reflected in monthly bill of consumers of all XWDISCOs till its final recovery and any excess / less adjustment would be settled between DISCOs and CPPA-G, the order said.

Keeping in view all the available information and the submissions made by MoE, wherein a reference has been made to the earlier motion dated November 09, 2018 filed by the Federal Government under Section 7, 31(4) and 31(7) of the NEPRA Act 1997 read with Rule 17 of the NEPRA (Tariff Standards and Procedure) Rules, 1998 for recommendation of uniform consumer end tariff at national level and guidelines prescribed with regard to methodology for incorporation of quarterly adjustments in the uniform tariff of XWDISCOs, in terms of provisions of the NEPRA Act and Tariff Rules, and subject to para 21 below, the Authority has determined a uniform rate of Rs.1.6236/kWh attached as Annex-I with the instant decision, for the allowed amount of quarterly adjustments of Rs.73,065 million pertaining to the 2nd quarter and Rs.91,805 million for the 3rd Quarter of FY 2019-20 (total Rs.164,870 million), across each category of consumers of XWDISCOs, based on projected sales for the FY 2017-18, after excluding therefrom the sales to life line consumers, to be recovered in 12 months period, starting from the date of its notification.