ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday said relief of Rs 5 per unit will materialize within the next few days and work is in progress to finalize things related to tariff.
Presiding over a public hearing on government’s motion to reduce tariff by Rs 1.71 per unit on account of additional petroleum levy of Rs 58.6 billion for three months, Nepra Chairman Waseem Mukhtar said the Authority was working to firm up Prime Minister’s announcement of reduction in tariff by Rs 7.69 per unit for the industry and Rs 7.41 per unit for domestic consumers except lifeline consumers.
He said consumers will get immediate relief of Rs 5.03 per unit within the next few days whereas the remaining relief will be extended in the QTA of third quarter.
Discos and KE consumers: Nepra approves Rs1.9 negative adjustment for Q2FY25
Additional Secretary Power Division Mahfouz Bhatti said that the amount of subsidy has increased to Rs 266 billion after addition of Rs 58.6 billion on account of PDL.
He further stated that currently only QTA mechanism is available to pass on any benefit to the consumers. Deputy Director CPPA-G Naveed Qaiser said that the impact of QTA, IPPs contracts termination, PDL savings of Rs 58.6 billion are part of reduction in tariff whereas Rs 1.50 per unit is PDL tax.
Industrialist Aamir Sheikh said that industry appreciates the reduction in tariff. And sought clarification given that the Chairman mentioned tariff relief of Rs 5 per unit whereas PD has said it is Rs 6 per unit.
He added that what he understood from the hearing was that relief in QTA will be Rs 1.9 per unit, TDS, Rs - 1.71 per unit, FPA - Rs 1.36 (Rs. 0.46 + Rs 0.90 per unit).
The FPA was Rs 2 per unit January 2025 but has reduced to Rs 0.46 per unit now so tariff increase from Jan is about Rs 1.5/unit meaning thereby net relief as compared to January is only 3/unit. FPA is floating so industry cannot add that to its relief calculation anyways. The only thing pending is next QTA.
“I hope NEPRA clarifies if the relief for the next QTA will be given to consumers in this quarter i.e. Apr to June (we will be getting 2 QTA simultaneously) or it will be finalised now but given to consumers in Jul-Sep. Assuming next QTA is given in this quarter and is about -1/unit, clarification would enable us to assume a net relief of around 4/unit so we can do export sales accordingly,” Sheikh added.
Tanveer Barry representative from Karachi Chamber said that the business community appreciates reduction in tariff. However, he asked if TDS and quarterly adjustments are a part of PM package or will be given separately.
TDS revenue is generated from petroleum levy and quarterly adjustment are reduction in capacity payments because of renegotiation with IPPS. Power sector Circular debt has reached up to 2400 billion and there is speculation that government will borrow from banks and impose surcharge on consumers
He also sought clarifications on some of the points raised during the hearing.
Chairman Nepra stated that the Authority has also taken a decision to pass on Rs 0.90 per unit negative adjustment to the consumers.
NEPRA decision said that in light of Power Division letter of February 26, 2025 regarding applicability of negative FCA to non-protected domestic and agriculture categories, the Authority during reconciliation of negative FCA’s not passed on to the consumers from July 2024 till February 2025, with CPPA-G, PITC and Discos, observed that impact of such retained amounts works out as Rs.23 billion for the period July 2024 till February 2025.
In past such retained amount was adjusted in the overall subsidy claims of Discos, however, owing to recent letter of MoE, the matter was deliberated upon. In light of discussions, the Authority has decided to pass on the impact of such negative retained FCA’s of Rs.23 billion to all consumers (except life line and protected domestic category) for a period of three months i.e. April to June 2025.
The benefit of Rs. 23 billion shall be passed on to the consumers at Rs.0.90/kWh, based on projected sales from April to June 2025, as per the notified tariff excluding the sales of life line and protected consumers. The impact of any under/over recovery of the allowed amount shall be made part of PYA by Discos in their upcoming tariff petitions.
Copyright Business Recorder, 2025
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