ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved Multi-Year Tariffs (MYTs) for five years, for three power Distribution Companies (Discos) i.e. Islamabad Electric Supply Company (IESCO), Lahore Electric Power Company (LESCO) and Faisalabad Electric Supply Company (FESCO).
The Nepra also approved MYT for the three Discos for supply of electricity to consumers.
According to the determination, the Authority has determined the MYT of IESCO for the control period from FY 2023-24 to FY 2027-28, whereby a revenue requirement of Rs 39.66 billion has been assessed for the Distribution Function of the Petitioner for the FY 2023-24.
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Accordingly, the differential amount of Rs 7.426 billion was allowed as part of PYA in the subsequent adjustment/ indexation determination of the Petitioner for the FY 2024-25.
The Authority observed that the petitioner although in instant petition bifurcated its costs into Distribution and Supply of Power Functions, however, the petition was submitted with common accounts and both functions combined. No progress has been shared by the petitioner in terms of its organizational restructuring. The Authority understands that a proper organization restructuring, is essential to improve the performance of the petitioner and to ensure transparency for both functions. Therefore, the petitioner is again directed that a restructuring plan in consultation with the federal government may be prepared, within the stipulated time.
As per the Authority’s determination dated July 14, 2023, the interim tariff allowed to the petitioner was subject to adjustment/ refund based on the final outcome of the MYT determination. However, it is crucial to note that the uniform tariff was notified by the federal government taking into account the interim tariff (which is in effect and implemented) and any adjustment at this stage may result in process of redetermination of uniform tariff for FY 2023-24 which may lead to practical difficulties, considering that only a few months are left in FY 2023-24.
The Nepra further contended that while being mindful of the interest of the consumers and companies providing electric power services in accordance with principles of transparency and impartiality as enshrined in section 7 (6) of the Nepra Act, the differential net amount of Rs 3,096 million (including Rs 7.426 billion for Distribution function), will be allowed as part of PYA in the subsequent adjustment/indexation determination of the petitioner for the FY 2024-25 and for the FY 2023-24, and the interim tariff notified by the GOP vide SRO dated 26.07.2023, will remain effective.
LESCO: The Authority has determined the MYT of LESCO for the control period from FY 2023-24 to FY 2027-28, whereby a revenue requirement of Rs 60.459 million has been assessed for the Distribution Function of the Petitioner for the FY 2023-24. Accordingly, the differential amount of Rs 7.735 billion, shall be allowed as part of PYA in the subsequent adjustment/ indexation determination of the petitioner for the FY 2024-25.
Faisalabad Electric Supply Company (FESCO): The Authority determined the MYT of FESCO for the control period from FY 2023-24 to FY 2027-28, whereby a revenue requirement of Rs.44.490 billion has been assessed for the Distribution Function of the Petitioner for the FY 2023-24. Accordingly, the differential amount of Rs 11.900 billion, will be allowed as part of PYA in subsequent adjustment indexation determination of the Petitioner for the FY 2024-25.
Copyright Business Recorder, 2024
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