Discos, KE’s base tariffs: Nepra all set to approve modifications

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) is all set to give its nod for modification in base tariffs of Discos and KE after adjustment of targeted subsidy for domestic consumers using less than 100 units per month.

In this regard, federal government has filed a motion with the regulator to adjust government of Pakistan’s approved power rates in the Schedule of Tariff (SoT). NEPRA will hear government’s motion today (Wednesday).

According to the government of Pakistan’s motion, Economic Coordination Committee (ECC) in its meeting held on July 4, conveyed the approval of government in anticipation of cabinet approval, to file the motion before NEPRA along with the schedule of tariff, as approved by the ECC on June 13 with the modification that clients consuming less than 100 units and falling in non-protected category shall be charged Rs13.48 per unit instead of Rs 19.56 per unit and that the consequential revenue adjustment differential shall be adjusted in various categories as per schedule of tariff of the Power Division’s summary of July 4.

NEPRA, in its notice stated that the federal government has filed Motion with respect to recommendation of consumer-end tariff of Discos and K-Electric under section 7&31 of the NEPRA Act, 1997 pursuant to tariff determinations of Discos under Multi-Year Tariff (MYT) regime on June 2, wherein NEPRA increased the National Average base tariff by Rs7.91 per unit.

The federal government will pass on Rs7.91 per unit determined by NEPRA in three phases, along with Rs0.20 per unit hike on account of subsidy rationalization phase-II.

According to the plan, Rs7.91 per unit will be passed in three phases, Rs3.5/unit in July, Rs3.5/unit in August and remaining Rs0.91 per unit from October onwards.

QTA 2Q 2021-22: Nepra increases Discos’ tariffs

The tariff for domestic consumers using 50 units (lifeline) will be Rs3.95 per unit, 5-100 units (lifeline), Rs7.74 per unit, for 1-100 units (protected), Rs7.74 per unit and 101-200 units(protected), Rs10.06 per unit October onward.

The average sale rate will be Rs18.96 per unit in July 2022, Rs22.48 per unit in August-September 2022 and Rs23.39 per unit from October onward. This will be in addition to other taxes and surcharges which are around 40% on the overall bill.

Federal government has also requested to modify uniform variable charges for K-Electric in order to maintain uniform tariff across the country keeping in view targeted subsidy of K-Electric and cross subsidies.

Accordingly, it has been requested to issue revised SoTs of K-Electric for the quarter October to December 2021 or incorporate in the latest SoT being determined by NEPRA for the quarter January to March 2022 with prospective application of applicable uniform rate after incorporating tariff rationalization to be notified by way of modification in SROs on 1429(1) 2021, 192(1) 2021, 1037(1) 2020 and 575(1) 2019 on the same pattern of Discos.

Copyright Business Recorder, 2022