NEPRA Allows Re. 0.57 Per Unit Increase in Power Tariff Under Quarterly Adjustments

The National Electric Power Regulatory Authority (NEPRA) has allowed Power Distribution Companies (DISCOs) an increase of Re. 0.57 per unit in the power tariff on account of adjustments for the first quarter of the fiscal year 2021-22.

Its notifications read, “The Authority has determined a positive uniform rate of Re. 0.57 per unit (kWh) having an impact of Rs. 14.337 billion pertaining to the 1st quarter (July to September) of the FY2021-22, across each category of consumers of DISCOS (except lifeline consumers).”

All the consumer categories (except K-Electric’s consumers and those using less than 100 units a month) will be charged the quarterly adjustment.

The NEPRA has decided to apply the increase in the base tariff that is to be charged from 1 June, and the incremental increase will be recovered from the consumers in three months from the date of the notification.

In the revised petitions, the DISCOs had claimed adjustments that were revised to Rs. 3.316 billion because of the variations in the capacity charges, variable Operations and Maintenance (O&M), the use of system charges, the market operator fee, and the Fuel Costs Adjustments (FCA) impact on the Transmission and Dispatch (T&D) losses after including therein the impact of the incremental sale.

NEPRA conducted a public hearing for the DISCOs’ petitions on 23 February, and it was observed that they had used different methodologies in their revised quarterly adjustments to calculate the impact of the incremental sales. NEPRA had told the DISCOs to provide their final calculations after consultation with the Ministry of Energy and the Central Power Purchasing Agency (CPPA) in consideration of the fact that the DISCOs had used different methodologies to determine the impact of the incremental sale.

While working out the instant quarterly adjustment, the entire amount of Rs. 1.85 billion on account of the capacity charges of the Kot Addu Power Company (KAPCO) was provisionally withheld. The NEPRA may consider this amount in the subsequent quarterly adjustments once CPPA provides complete details and justifications for the claimed amount.

Consequently, electricity consumers will have to bear the burden of Rs. 14.337 billion that is to be recovered from them within three months from June onward.

Faiz Paracha is a seasoned broadcast journalist with over 15 years’ experience in reporting and e...