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HomeBusinessNepra points to a hike of Re0.50 per unit in electricity tariff...

Nepra points to a hike of Re0.50 per unit in electricity tariffTAZAA News

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ISLAMABAD-The National Electricity Regulatory Authority (Nepra) on Wednesday indicated an increase of Re0.50 per unit in electricity tariff​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ 2nd quarter revision for the financial year 2022-23.

Nepra held a public meeting to discuss the tariff hike for the second quarter adjustment of DISCOs for the financial year 2022-23. NEPRA Chairman Engineer Tasif X. Farooqui presided over the court session while Nepra members Engineer Maqsood Anwar Khan, Mutar Niaz Rana and Amna Ahmed were also present in the proceedings.

DISCOs have submitted a request to recover Rs 17.391 billion from consumers for the quarterly adjustment. Power companies have asked to recover from consumers on account of capacity charges, transmission and M&A charges, variable and M charges and the impact of T&D losses on FCA in Q2 2022-23. Of the total Rs 17.39b, independent power producers (IPPs) will receive Rs 1.19b from Fesco consumers, Rs3.9b from Gepco and Rs2.06b from Lesco consumers as capacity charges. Interestingly, Iesco, Mepco, Pesco and Sepco showed a negative Rs14b in capacity charges, which means that these discoms resorted to coercion to control their losses and did not supply the required electricity to consumers.

This huge amount was paid to those IPPs who were unemployed and did not work. The NEPRA chairman said that Pesco’s capacity charge is negative, which is a cause for concern. Pesco consumers have also complained about forced shipping, he added. He said that you have not done a good job of using the existing electricity, because the state pays for the installed capacities. It is a shared waste, he added. You did not meet MDI. It is very negative, we paid for the capacity, but the electricity was not used, he said. Pesco says it is not using the full power, so there is a mess somewhere, Nepra chairman said. He said that Independent Power Producers (IPPs) get money from capacity charges.

It was informed at the meeting that, contrary to PESCO’s demand for 2100 MW, the company provided 1350 MW of electricity from the national grid and 1200 MW to its consumers. PESCO is one of the worst discos in the country. Consumers were not provided with electricity and they faced forced load shedding. Member of NEPRA Khyber Pakhtunkhwa, Engineer Maqsood Anwar Khan said that you (PESCO) cannot control the losses and resort to forced dumping instead. What an easy solution you have found, said Maqsood Anwar Khan while referring to PESCO.

Nepra has sought a detailed report from PESCO and other discoms on non-utilization of electricity to full capacity. Earlier, consumers were charged an average of Rs 3.08 per unit for the 1st quarter adjustment of FY2022-23, applicable till March 2023, Nepra said. This adjustment is applicable to all consumers of DISCOS, except consumers of power line and K-power. Nepra said the tariff hike will be charged to electricity consumers in the months of April, May and June 2023. However, the electricity department has requested the power regulator to communicate the tariff hike to the consumers without delay. Consumers were already paying Rs 3.08 per unit due to the quarterly adjustment, Nepra said. The regulator has expressed displeasure with the performance of electricity distribution companies (DISCOs).

The electricity regulator has also asked the Electricity Department to levy an additional Rs 3.39 per unit on consumers who were already paying the bill. The difference in the adjustment of transfer charges was higher this quarter at 28,496 billion rupees, Nepra chairman said. He said the amount would have been reduced by Rs 11 billion if there had been no adjustment in transfer charges. Disocs will pass on the increase in electricity bills to consumers for the months of April, May and June as per the regulator, Nepra said. However, the Electricity Department has requested to increase the electricity tariffs in the months of March, April and May 2023. Nepra said it will give its detailed decision after further investigation of the data.


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