ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) is likely to allow an increase of Rs1.5 per unit in the tariff for the Ex-Wapda distribution Companies Discos (XWDISCOs).

At a public hearing of a suo motu proceeding regarding periodical adjustments on account of Power Purchase Price (PPP) and Prior Year Adjustment (PYA) for 2016-17 in the consumer end tariff for XWDISCOs, Nepra was informed that that Rs19 billion Net Hydel Profit (NHP) was payable by the distribution companies for financial year 2016-17 and another Rs40 billion as its arrears to Khyber Pakhtunkhwa. The hearing was presided over by Nepra Chairman Brig (r) Tariq Sadozai.

It is pertinent to mention here that last month the regulator had allowed an increase of Re0.48 per unit in the average tariff, for the Ex-Wapda Discos, with a financial impact of Rs24.34 billion. After accounting for prior year adjustments etc under various heads, the tariff for various Discos required to be 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. The decision will have a revenue impact of Rs115 billion.

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 a few days ago and was considering take it up to Rs12.90 per unit.

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.

According to the regulator, 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.