Power Distribution Companies Seek Nepra’s Approval for Rs51.88 Billion Recovery


State-owned power distribution companies (Discos) have formally requested the National Electric Power Regulatory Authority (Nepra) to approve the recovery of Rs51.88 billion from consumers. This recovery is attributed to various adjustments for the third quarter of fiscal year 2023-24, spanning from January to March 2024.

A significant portion of this amount, constituting 60.4% or Rs31.35 billion, comprises capacity charges from power consumers to be paid to private power generators. Once Nepra establishes the additional charges per unit for Discos, these will also apply to K-Electric customers.

Aligned with federal government policy guidelines for uniform quarterly adjustments, this third-quarter tariff adjustment (QTA) is set for Nepra’s determination, affecting both Discos and K-Electric customers.

Nepra has scheduled a public hearing on May 17, 2024, to review the petition. The Discos’ request includes adjustments for capacity charges, transmission charges, market operation fees, and other variable operation and maintenance costs for the quarter.

Among the Discos, Islamabad Electric Company (Iesco) seeks Rs8.17 billion, Lahore Electric Supply Company (Lesco) Rs3.94 billion, Faisalabad Electric Supply Company (Fesco) Rs9.318 billion, Multan Electric Company (Mepco) Rs3.62 billion, Peshawar Electric Supply Company (Pesco) Rs14.717 billion, Hyderabad Electric Supply Company (Hesco) Rs5.413 billion, Quetta Electric Supply Company (Qesco) Rs5.389 billion, and Sukkur Electric Power Company (Sepco) Rs2.773 billion.

Additionally, Gujranwala Electric Power Company (Gepco) and Tribal Electric Supply Company (Tesco) are expected to return Rs899 million and Rs562 million, respectively, to their clients.

The sought recovery includes amounts for capacity charges, use of system charge (UoSC), market operator fee (MOF), and positive adjustments for variable operation and maintenance (O&M) charges. Consumers are also subject to multiple taxes, including an 18% GST contributing an extra Rs9.33 billion burden on power consumers.

Nepra had previously approved Rs85.275 billion for the second quarter of FY 2023-24, with an impact of Rs2.7492/kWh, collected from April to June 2024. The first QTA adjustment, with a rate of Rs1.1502/kWh, concluded by March 2024.

Story by Israr Khan

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