ISLAMABAD - Pakistan’s electricity consumers have been burdened with an additional Rs 51 billion (including GST) as National Electric Power Regulatory Authority has allowed ex-Wapda Discos and K-Electric to collect Rs1.7432 per unit on account of quarterly tariff adjustments for the 4th quarter of 2023-24.
As per the decision issued by the National Electric Power Regulatory Authority (Nepra), the regulator has allowed XWDiscos and K-Electric to collect an additional Rs1.743 per unit from electricity consumers in next three months (from September to November 2024).
This potential increase is aimed at collecting Rs43.23 billion (Rs51 billion after the application of 18 percent GST) through quarterly tariff adjustments for the fourth quarter of 2023-24, which covers the period from April to June 2024. In their petition, XWDiscos had sought the Nepra nod for recovering Rs46.805 billion from consumers, pertaining to various adjustments for the fourth quarter of the last fiscal year 2023-24. However, the regulator approved Rs43.23 billion after making several adjustments.
Almost half of the burden of Rs 43.23 billion consists of the capacity payments of Rs 21.253 billion to be paid to IPPs for unused electricity during the 4th quarter of 2023-24. During a public hearing held on 26 August, XWDiscos submitted that adjustments were largely result of lack of sales as compared to the projections during the instant quarter. The regulator, however observed that certain DISCOs, such as PESCO, failed to draw energy as per its demand, and opted to carry out load shedding in its service area. While this reduced their share of capacity charges from overall pool, it also contributed to lower sales. These companies had sought for Rs1.9/unit additional collection.
The Central Power Purchasing Agency (CPPA-G) as an agent of the XWDISCOs engaged in Local & International legal proceedings had requested to allow Rs 51 million on account of Legal charges in the instant quarterly adjustment, but the authority turned it down. The authority noted that since such costs are included in Market Operation Fee (MoF), and for it the authority had already approve Rs500 million on account of legal charges as part of CPPA MoF for the FY 2023-24.
CPPA in its plant wise data has also included an amount of Rs72.23 million on account of KAPCO charges on account of Tax differential for the period from 01 Jul to 24 Oct 2022. But the authority did not consider the amount claimed for KAPCO.
The Authority has also adjusted an amount of Rs.73.18 million charged by CPPA-G to DISCOs on account of PPIB fee as part of PMLTC invoice for January 2024. The matter of PPIB is under consideration of the Authority through separate proceedings, therefore, the matter would be decided once those proceedings are concluded. Authority determined a positive adjustment of Rs43.23 billion on account of variation in Capacity charges, Variable O&M, additional recovery on Incremental sales, Use of System Charges, Market Operator Fee and FCA impact on T&D losses for the 4th quarter of PY 2023-24.
The Authority has decided to allow positive quarterly adjustments of Rs.43.23 billion pertaining to the 4th quarter of the FY2023-24, in a period of three months i.e. September to November 2024, at a uniform rate of Rsl.7432/unit, to be applicable to all consumer categories, except lifeline consumers. In another decision, NEPRA directed DISCOs to refund Rs0.3692/unit to its clients in their September bills on account of monthly Fuel Charges Adjustment (FCA) for July 2024.
This FCA refund will be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, Electric Vehicle Charging Stations (EVCS), Pre-paid electricity consumers of all categories who opted for pre-paid tariff and agriculture Consumers of all the XWDISCOs. The decision also clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.
