ISLAMABAD: Power consumers should prepare for an impending tariff increase in the coming months, as state-owned power distribution companies (Discos) have formally requested approval from the National Electric Power Regulatory Authority (Nepra) to recover Rs81.5 billion from consumers.
The sought recovery pertains to various adjustments for the second quarter of the fiscal year 2023-24, spanning October to December 2023. This recovery has a major chunk of 92.2 percent or Rs75.1 billion as capacity charges from the power consumers to be paid to the private power generators.
Once the Nepra determines the per unit additional charges for Discos, the same will apply to the K-Electric too. In the 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.
The power regulator has decided to hold a public hearing on the petition on 14th February, 2024. Discos in their petition had demanded an increase in tariff on account of capacity charges, transmission charges, the impact of incremental units, market operation fees, the impact of transmission and distribution (T&D) losses on FCA and other variable operation and maintenance charges for the quarter. As per the petition, Islamabad Electric Company (Iesco) had sought additional adjustment of Rs6.921 billion, Lahore Electric Supply Company (Lesco) Rs15.105 billion, Gujranwala Electric Power Company (Gepco) Rs2.663 billion, Faisalabad Electric Supply Company (Fesco) Rs9.446 billion, Multan Electric Company (Mepco) Rs14.884 billion, Peshawar Electric Supply Company (Pesco) Rs11.583 billion, Hyderabad Electric Supply Company (Hesco) Rs3.524 billion, Quetta Electric Supply Company (Qesco) Rs10.983 billion, Sukkur Electric Power Company (Sepco) Rs2.879 billion and Tribal Electric Supply Company (Tesco)Rs3.51 billion. Of the total amount of Rs81.5 billion, Discos have sought to include Rs75.1 billion on account of capacity charges, Rs6.587 billion on account of use of system charge (UoSC) and market operator fee (MOF), Rs10.818 billion on account of T&D losses in monthly FCA and negative adjustment of Rs2.335 billion of incremental units. Another negative adjustment is of variable O&M charges. Discos’ inefficiencies, power losses, and theft in systems would be recovered from loyal consumers in the form of these recoveries.
Multiple taxes, the consumers were paying on these additional charges, were another burden on the consumers. Only the 18 percent GST on this amount will add up another burden of Rs14.67 billion on the power consumers.
