Nepra allows Re0.57/unit hike in power tariff of ex-Wapda Discos
ISLAMABAD – The National Electric Power Regulatory Authority has allowed Ex-WAPDA Discos an increase of Re.0.5715 per unit in power tariff on account of adjustments for the first quarter of fiscal year 2021-22.
“The Authority has determined a positive uniform rate of Rs.0.5715/kWh having an impact of Rs14.337 billion pertaining to the 1st quarter (July to September) of the FY2021-22, across each category of consumers of XWDISCOs (except lifeline consumers),” said a decision issued here by NEPRA.
In revised petitions, XWDISCOs claimed adjustments were revised to Rs33,164 million, on account of variation in capacity charges, variable O&M, use of system charges, market operator fee and FCA impact on T&D losses, after including therein, the impact of incremental sale .
Nepra conducted public hearing on XWDiscos petitions on February 23, 2022. During the hearing, it was observed that XWIDSCOs have used different methodologies in their revised quarterly adjustments for the purpose of calculation of impact of incremental sales. XWDISCOs also included the impact of incremental sales for the previous period i.e. from November 2020 onward, in their instant quarterly adjustment request.
The Authority, considering the fact that XWDISCOs used different methodologies to work out the impact of incremental sale, directed XWDISCOs to provide their final calculations after consultation with the MOE and CPPA-G.
Tariff has been increased on account of adjustments for first quarter of fiscal year 2021-22
In its written reply CPPA-G highlighted that the Authority vide decision on the subsidy neutral industrial support package for additional consumption, dated December 01, 2020, approved that the incremental marginal rate of Rs.12.96/kWh may be charged from industrial consumers from November 01, 2020 to October 30, 2023 for their incremental consumption against reference period. It was further decided that no QTAs would be passed on to the extent of incremental sales till continuation of the instant package, as the capacity charges would be actualized from the previous level of corresponding month sales.
In view of the submissions of CPPA-G and the decision of the Authority dated December 01,2020, the Authority has decided to work out the quarterly adjustment based on net units, i.e. units purchased for incremental sales have not been included while working out the quarterly adjustments. Accordingly, the cost recovered on incremental units over and above the fuel cost i.e. (Rs.12.96 less Reference Fuel Cost for each month) has been adjusted from the quarterly adjustments worked out based on net units. Similarly the Prior Year Adjustment (PYA) as well as sales mix would also be worked out based on net units i.e. excluding units purchased for incremental sales. Thus, no further adjustment would be allowed for units purchased for incremental sales.
Accordingly, while working out the instant quarterly adjustments, the amount of Rs. 52.3 million on account of legal / litigation charges have not been considered.
While working out the instant quarterly adjustment, the entire amount of Rs. 1,856 million on account of capacity charges of KAPCO has been provisionally withheld. The Authority may consider this amount in the subsequent quarterly adjustments, once CPPA-G provides complete detail and justifications of the claimed amount.
Based on the above discussion, information submitted by CPPA-G, adjustment requests filed by XWDISCOs and keeping in view the afore-mentioned adjustment, the amount of quarterly adjustment for the quarter of FY2021-22 has been worked out as positive Rs.14,337 million.
The Authority has decided to apply the same w.e.f June 01, 2022, to be recovered within 03 months period from the date of notification.
It further said that no quarterly adjustments would be passed on to Bi, B2, B3 and B4 industrial consumers to the extent of incremental sales till continuation of the instant package, in line with the Authority’s decision dated December 01, 2020.