Commerce Reporter
ISLAMABAD-The electricity consumers are likely to face another power price hike as National Electric Power Regulatory Authority (NEPRA) has received petitions seeking an increase in tariff for ex-Wapda Power Distribution Companies (XWDiscos) and KE by Rs 2.10 per unit and Re0.5087 per unit respectively.
In its petition, the ex-Wapda Power Distribution Companies (XWDiscos) have sought the regulator’s permission to transfer an additional burden of Rs 42.6b to electricity consumers on account of quarterly adjustments for first quarter (July-September) of FY2022-23 under QTA mechanism. The XWDiscos request, if accepted by NEPRA, will have an impact of Rs2.10/unit on the power consumers. In its petition submitted to NEPRA, XWDiscos have demanded an increase on account of capacity charges, transmission charges and market operation fee, impact of T&D losses on FCA and variable operation and maintenance charges for the 1st quarter of FY2022-23 (July to September 2022). According to Discos petition, Iesco has sought positive adjustment of Rs2.704b, Lesco Rs 9.101b, Gepco Rs5.337b, Fesco Rs6.377b, Mepco Rs 10.688b, Pesco Rs 2.129b, Hesco Rs 450 million, Qesco Rs 3.663b, Sepco Rs 905 million and Tesco Rs 1.282b respectively.
XWDiscos have sought Rs31b on account of capacity charges, Rs6.431b on account of UOSC & MOF, variable O&M Rs 2.169b, Rs7.408b on account of T&D losses in monthly FCA and negative adjustment of Rs 4.248b of incremental units. The government of Pakistan (GoP) has submitted a petition in NEPRA to raise tariff by Re0.5087 for Karachi’s power consumers under uniform quarterly adjustments. The Authority has determined periodic adjustment in tariff for the 3rd Quarter of FY 2021-22 for XWDISCOs having uniform rate of Rs. 0.5087/kWh for three months period.
In accordance with the National Electricity Policy, 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies (even after privatization) through incorporation of direct/indirect subsidies. Accordingly, KE applicable uniform variable charge is also required to be modified so as to recover the revenue requirements of KE, determined by the Authority consistent with the XWDlSCOs. The same has been approved by the federal government and it was decided that the same be submitted to the Authority for consideration in terms of the provisions of the Act. In light of the above, instant motion is being fiIed by the federal government with respect to consumer end tariff recommendations of KE, under section 7, 31 (4) and 31 (7) of the Act read with Rule 17 of the Rules so as to reconsider and issue for KE, modified uniform variable charge, to maintain uniform tariff across the country, to recover the revenue requirements of KE determined by the Authority keeping in view the proposed targeted subsidy and cross subsidies.
The Authority is accordingly, requested to issue separate SoT with prospective application of applicable uniform rates after incorporating tariff rationalization. Such adjustment shall be applicable on the consumption of September 2022, October 2022 and November 2022 to be recovered from consumers in November 2022, December 2022 and January 2023 respectively. NEPRA will conduct public hearing on Federal Government motion for increase in KE tariff on November 08, 2022, while on XWDiscos petition the hearing will be held on November 15,2022.
