ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) on Tuesday allowed Rs1.50 per unit increase in electricity tariff for all the Ex-Wapda Distribution Companies (XWDISCOs) for the fiscal year 2016-17.

As per the Nepra’s decisions, after accounting for prior year adjustments etc under various heads, the tariff for various Discos has been increased ranging from Rs3.38 per unit to 13 paisa per unit or an average of Rs1.50 per unit. The Nepra’s decision will have a revenue impact of Rs115 billion.

A public hearing, in this regard held on October 10, was presided over by Nepra Chairman Brig (R) Tariq Sadozai and attended by all its members. Nepra was informed that Rs19 billion Net Hydle Profit (NHP) was payable by the distribution companies for financial year 2016-17 and another Rs40 billion as its arrears to Khyber Pakhtunkhwa (KP).

In a span of one month, Nepra has allowed second increase in power tariff of Ex-Wapda Distribution Companies (XWDISCOs). It is pertinent to mention here that on September 18, 2017, Nepra has allowed 48 paisa per unit increase in the average tariff with a financial impact of Rs24.34 billion as write off against defaulted bills by the consumers without approval of respective board of directors of the distribution companies. The government is expected to notify both the increase shortly.

The average tariff for Discos was estimated at about Rs12.90 per unit. Originally, the Nepra had determined the average tariff at Rs10.90 per unit for 2015-16 which it allowed to be jacked up to Rs11.38 per unit, last month, and now it was allowed to take it to around Rs12.90 per unit. The decision will have a cumulative impact of about 18.5 percent.

During the hearing, Nepra observed that it considered determination of power purchase price (PPP) on account of capacity payments and prior year adjustments. This raise will be 18.4 percent if compared with Rs10.90 per unit of 2015-16 which was not notified due to litigation.

As per the details, Rs59 billion is on account of capacity for Net Hydel Profit (NHP) to be paid to KP as arrears. This amount was incorporated in generation tariff but not in consumer end tariff which is not done. Rs12 billion is on account of Prior Year Adjustment (PYA) as Rs57 billion negative adjustment was allowed across Pakistan as of June 30, 2016 and if this negative adjustment has been dragged to June 30, 2017, then it would increase by Rs12 billion net.

As per the decision, the total adjustment for Iesco will be Rs9.855 billion, Lesco Rs3.363 billion, Gepco Rs7.166 billion, Fesco Rs7.023 billion, Mepco Rs18.336 billion, Pesco Rs1.886 billion, Hesco Rs19.771 billion, Qesco Rs2.590 billion, Sepco Rs7.337 billion and Tesco Rs1.306 billion. According to Nepra, it considered determination of Power Purchase Price (PPP) on account of capacity payments and prior year adjustments. After accounting for prior year adjustments etc under various heads, the tariff for various Discos was increased ranging from Rs3.38 per unit to 13 paisa per unit or an average of Rs1.50 per unit because of a uniform rate.