ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday expressed serious disappointment at the working of power Distribution Companies (Discos) in which positive adjustment of Rs 3.28 per unit was sought to recover Rs 85 billion from consumers for second quarter of FY 2023-24.
The Authority comprising of Chairman Nepra Waseem Mukhtar, Member (Technical) Sindh Rafique Ahmad Shaikh and Member KPK Maqsood Anwar Khan, conveyed it reservations at the way country’s power sector is being run.
The positive adjustment in QTA for second quarter will be applicable on consumers of Distribution Companies and K-Electric. However, the KE will also submit its own petition for adjustment in QTA. The quarterly adjustments included capacity charges, transmission charges, variable charges and T&D losses impact of FCA.
All Discos sans KE: Nepra hikes tariff by Rs4.56/unit
The Authority was informed that current estimates indicated that the impact of positive adjustment in QTA will be over Rs 85 billion for second quarter as capacity charges of Rs 1.23 billion are yet to be claimed from Peshawar Electric Supply Company (PESCO)).
Initially CPPA-G had sought positive adjustment of Rs 81.453 billion in QTA for second quarter but later on it was revised upward to Rs 84.016 billion. However, it has again been revised to over Rs 85 billion. The frequent alteration in figures and absence of CEOs CPPA-G and Discos angered the Authority which then hurled a volley of questions about the performance Discos.
Nepra’s Tariff Section informed the Authority that if recovery of QTA of second quarter begins from March, its impact will be Rs 2.70 per unit, in addition to existing applicable QTA of Rs 4.43 per unit. However, if it is implemented in April, May and June 2024, its impact will be of Rs 3.28 per cent.
Mubashir Bhatti, representative of Tariff Section argued that application of QTA of second quarter of current fiscal year in Marchwill have higher impact on consumers due to already applicable QTA but in April, May and in June, 2024, its impact will be lower.
The Authority, will take decision on its own about the applicability of QTA of second quarter of 2023-24.
The Authority argued that on one hand electricity sale declined by 13 percent during the second quarter of current fiscalyear due to closure or relocating of industry and on the other load shedding is usual in provinces, raising questions as to why capacity charges are too exorbitant in those Discos where industry is negligible.
The Authority revealed that 1,70,000 electricity connections are pending across the country, adding that if new connections are granted, 1100 MW additional electricity will be consumed, which implies that capacity charges of 1100 MW could have been reduced from total requested capacity charges.
The Authority including chairman expressed anger at the junior level representation from CPPA-G and Discos at a time when power sector performance is below target.
The chairman Nepra observed that since Discos are being run by the government, the officials of Discos are not ready to take responsibility and are dealing with the situation as usual.
Member (Technical) Sindh Rafique Ahmad Shaikh said he does not understand “who is responsible of power sector affairs?” and disclosed that Show Cause notices are also being served to Discos for overbilling.
In reply to a question, the chairman Nepra said that the Regulator is unaware of discussion between IMF, Power and Finance Divisions.
He further stated that rebasing for next fiscal year will be finalised by June 2024 adding that accuracy of rebasing will determine the future QTA and FCAs. He said recovery of two or three quarters is due by June 2024 which will have substantial impact on consumers.
He said, no improvement is witnessed in Discos, adding that the Authority is too disappointed on the working of Discos/ CPPA-G. He said that submission of this kind of working before the Authority is highly inappropriate. The Nepra decided to summon all CEOs of Discos in the next QTA hearing or at least senior most officers if CEO is not available due to attendance in court. Vice President, KCCI, Tanveer Barry said that KCCI rejects any increase in QTA because industry is already paying heavy tariff because of Discos inefficiencies. Karachi is already paying four quarterly adjustments and two surcharges.
Copyright Business Recorder, 2024
Comments
Comments are closed.