The National Electric Power Regulatory Authority (Nepra) has allowed an increase of Rs 4 per unit in Distribution Companies (Discos) power tariff for 2017-18 of which around Rs 2 per unit is Prior Year Adjustment (PYA). This increase will be applicable to all categories of consumers of nine power Distribution Companies (Discos); however, lifeline consumers will be exempted from this raise. This issue was also discussed in the Economic Coordination Committee of the cabinet last week.
"The overall impact in national average has been calculated at Rs 4 per unit as references of future including payment of Net Hydel Profit (NHP) and new power plants, etc, have also been increased. If currently determined tariff of Rs 15.54 per unit is compared with Rs 11.45 per unit being paid by the consumers, the increase will be Rs 4 per unit. However, if it is compared with existing determined tariff of Rs 12.91 per unit, the impact will be Rs 2.63 per unit," said an official.
The Authority has determined the tariff on the basis of documents presented by Discos and now it is up to the government to collect Rs 4 per unit or Rs 2 per unit from the consumers.
The Discos will collect Rs 180 billion from consumers across the board, except lifeline consumers. The Nepra had been directed by the ECC to finalize PYA determinations immediately. As Nepra received directives, it published an advertisement in media and gave companies just a couple of days in this regard.
The Authority determined consumer end tariff of Gepco, Mepco, Pesco, Hesco, Sepco and Qesco for 2015-16 which was notified by the federal government on March 22, 2018. The notified determinations provide mechanism for quarterly adjustments on account of Power Purchase Price. The Nepra has also determined tariff for Gepco, Mepco, Pesco, Hesco, Sepco and Qesco for the FY 2017-18 which was intimated to the federal government for notification. Considering the fact that FY 2017-18 has lapsed, the Authority further decided to consider the impact of Prior Year Adjustment (PYA) in the proceedings. Six Discos have sought PYA against capacity payments, O&M, use of system charges and T&D losses which are other than the fuel component. Islamabad Electric Supply Company (Iesco), Lahore Electric Supply Company (Lesco) and Faisalabad Electric Supply Company have already been allowed PYA recently.
On September 7, 2018, the Nepra briefly heard PYA requests of eight power Distribution Companies. The representative of Peshawar Electric Supply Company (Pesco) sought PYA of Rs 17.839 billion, Multan Electric Power Company (Mepco), Rs 23.50 billion, Hyderabad Electric Supply Company (Hesco), Rs 15.453 billion, Sukkur Electric Supply Company (Sepco), Rs 6.158 billion, Gujranwala Electric Power Company (Gepco), Rs 10.464 billion, and Quetta Electric Supply Company, Rs 9.9 billion.
The Authority has calculated the impact of negative FCA pertaining to the FY 2017-18 in the matter of lifeline consumers, domestic consumers (consuming up to 300 units) and agriculture consumers, which has been retained by the Discos for the FY 2017-18.
The Authority in view of the policy guidelines of GoP regarding rationalization of subsidy in the matter of Discos and in line with its earlier decision in the matter, has decided not to adjust the impact of negative FCA across different consumer categories. Thus, the negative FCA amount pertaining to the lifeline consumers, domestic consumers (consuming up to 300 units) and agriculture consumers for the FY 2017-18 i.e. Rs 8.838 billion for Gepco, which is still lying with the company, must be adjusted by the federal government against the overall Tariff Differential Subsidy (TDS).
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