ISLAMABAD - National Electric Power Regulatory Authority, while showing serious concerns over the XWDiscos’ discouraging attitude towards the net metering, has asked the state-owned power distribution companies not to stop consumers from switching to net metering.
“Why you are harassing the consumers who wants to switch over to net metering?” said member Nepra Sindh Rafiq Shaikh during a public hearing on the ex-Wapda Discos petition for the recovery of additional Rs46.805 billion from the electricity consumers on account of quarterly tariff adjustments for the 4th quarter of 2023-24.
The hearing, which was presided over by Chairman Nepra Waseem Mukhtar, was informed by the regulator official that if the demanded hike under QTA was approved, it will burden the consumers by Rs 1.90 per unit. In the revised petition, XWDiscos had requested Nepra approval to recover Rs46.805 billion from consumers, pertaining to various adjustments for the fourth quarter of the last fiscal year 2023-24 (April to June 2024). The application of 18 percent GST on Rs46.805 billion will add another Rs8.46 billion to the burden of the XWDiscos’ consumers, taking it to Rs55.46 billion. This recovery has a major chunk of 48.7% or Rs22.868 billion as capacity charges from the power consumers to be paid to the private power generators.
XWDiscos in their petition had demanded an increase in tariff on account of capacity charges, transmission charges, market operation fees, the impact of transmission and distribution (T&D) losses on FCA and other variable operation and maintenance charges for the quarter.
Of the total amount of Rs47 billion, Discos have sought to include R22.868 billion on account of capacity charges, Rs7.51 billion on account of use of system charge (UoSC) and market operator fee (MOF), Rs10.81 billion on account of T&D losses in monthly FCA, and another Rs4.01 billion adjustment is of variable O&M charges. During hearing, the official of Nepra further informed that due to low power consumption, capacity charges have increased. The electricity distribution companies had withdrawn less electricity than the reference demand, the official said. Member Nepra refiq Shaikh asked the Discos, “Tell us the reason for the increase in capacity payments?”. What measures have not been taken by which has resulted increase in capacity payment, he asked. Member Nepra Khyber Pakhtunkhwa Maqsood Anwar asked the Discos officials that how much electricity the companies have taken from the national grid? He asked the Discos how much electricity quota was allotted to each company during the fourth quarter? He further asked the officials to provide the details of each Disco used and unused available electricity during the fourth quarter.
Member Nepra, Rafiq Shaikh said that complaints have been received from Gujranwala Electric Power Company (GEPCO) and Peshawar Electric Supply Company (PESCO) for creating hurdles to prevent people from switching to net metering. “Why are electricity companies are stopping people from net metering? Rafiq Shaikh asked and added has the board of directors of Discos considered themselves above the Nepra’s orders? As per the revised petition, Islamabad Electric Company (Iesco) had sought additional adjustment of Rs 926 million, Lahore Electric Supply Company (Lesco) Rs3.995 billion, Gujranwala Electric Power Company (Gepco) Rs7.682 billion, Faisalabad Electric Supply Company (Fesco) Rs4.777 billion, Multan Electric Company (Mepco) Rs7.909 billion, Peshawar Electric Supply Company (Pesco) Rs 674 million, Hyderabad Electric Supply Company (Hesco) Rs5.016 billion, Quetta Electric Supply Company (Qesco) Rs8.078 billion, Sukkur Electric Power Company (Sepco) Rs4.538 billion and Tribal Electric Supply Company (Tesco) Rs3.210 billion. Nepra has reserved the judgment. In light of the policy guidelines issued by the federal government for the application of uniform quarterly adjustments, this second quarterly tariff adjustment (QTA) for FY2023-24, to be determined by Nepra, shall also apply to the customers of K-Electric.
