Oct-Dec QTA: Discos seek increase in tariffs


Power Distribution Companies (Discos) have sought an increase of up to Paisa 70 per unit in their tariffs to recover Rs 17.198 billion from their consumers for the second quarter (Oct-December) of fiscal year 2022-23 under Quarterly Tariff Adjustment (QTA) mechanism.

National Electric Power Regulatory Authority (Nepra) is scheduled to hold a public hearing on the QTA adjustments of Discos on February 22, 2023 where Chief Financial Officers (CFOs) of Discos will justify their claims.

Sometime Discos revise their QTA claims at the eleventh hour which changes the cumulative impact of increase or decrease in tariff for the respective quarter.

According to data shared by Discos, they have filed their requests for adjustments on account of capacity charges, transmission charges and Market Operator Fee (MOF), impact of incremental units, impact of T&D losses on FCA and variable operation and maintenance charges for the second quarter of FY 2022-23.

The Discos have sought overall negative adjustment of Rs 6.190 billion on account of capacity charges, positive adjustment of Rs 1.699 billion as variable Operation and Maintenance (O&M), positive adjustment of Rs 28.498 billion on account of transmission charges and Market Operator Fee, i.e., CPPA-G.

It is unclear how much amount has been sought by Discos for Use of System Charges (UoSC), i.e., transmission charges and MOF fee and Nepra has not separated both amounts.

The main share of QTA’s proposed adjustment is related to UoSC and MOF. Of the total amount of Rs 28.498 billion, share of Iesco is Rs 2.434 billion, Lesco, Rs 6.395 billion, Gepco, Rs 3.283 billion, Fesco, Rs 4.131 billion, Mepco, Rs 4.9 billion, Pesco, Rs 3.031 billion, Hesco, 1.694 billion, Qesco, Rs 1.231 billion, Sepco, Rs 617 million and Tesco Rs 781 million.

The Discos had sought negative adjustment of Rs 2.040 billion on account of impact of T&D losses on monthly FCA whereas negative adjustment of Rs 4.770 billion has been sought as impact of incremental units.

The documents show that Iesco has sought positive adjustment of Rs 1.322 billion on all accounts, Lesco, Rs 6.347 billion, Gepco, 6.566 billion, Fesco, Rs 4.479 billion, Mepco, Rs 2.407 billion, Hesco, Rs 1.738 billion and Tesco Rs 1.306 billion. However, Pesco, Qesco and Sepco have sought negative adjustments of Rs 1.929 billion, Rs1.633 billion and Rs3.405 billion, respectively.

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