ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Tuesday approved an average increase of Rs 1.25 per unit in tariffs of power Distribution Companies (Discos) for third quarter of FY 2022-23 under QTA mechanism to recover additional costs of Rs 46.536 billion from consumers.
The regulator announced its decision a day before a scheduled hearing on FCA of Discos for May 2023 in which CPPA-G sought positive adjustment of Rs 2.05 per unit. Nepra will also conduct public hearing on KE’s FCA request of positive adjustment of Rs 1.50 per unit on Wednesday (today).
According to the figures presented by Nepra’s Tariff Section team of the total requested adjustment of over Rs 46 billion, Rs 32.889 billion was on account of capacity charges to be paid to power plants.
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The amount will be recovered from consumers in three months i.e. July, August and September 2023. Initially Discos had sought positive adjustment of Rs 44.456 billion, however, the amount was revised upward after three Discos submitted altered figures from those earlier submitted to the Authority.
New figures indicate that Islamabad Electric Supply Company (Iesco) has sought negative adjustment of Rs 5.139 billion for the third quarter, Lahore Electric Supply Company (Lesco) Rs 12.995 billion, Gujranwala Electric Power Company (Gepco) Rs 6.030 billion, Faisalabad Electric Supply Company (Fesco) Rs 10 billion, Multan Electric Power Company (Mepco) Rs 10.120 billion, Peshawar Electric Supply Company (Pesco) Rs 1.424 billion and Hyderabad Electric Supply Company (Hesco) Rs 4.987 billion, Quetta Electric Supply Company (Qesco) Rs 2.365 billion, Sukkur Electric Supply Company (Sepco) negative adjustment of Rs 143 million and Tesco Rs 3.650 billion.
The total requested amount for variable O&M is Rs 5.076 billion, Use of System Charges (UoSC) and Market Operator Fee (MOP) Rs 11.187 billion and impact of T&D losses on monthly FCA, Rs 979 million. However, impact of incremental units has been calculated at negative Rs 3.842 billion.
Individual QTA adjustments of Discos are as follows: (i) IESCO, Rs 1.3110 per unit;(ii) Lesco, Rs 1.5965 per unit;(iii) Gepco, Rs 1.4752 per unit;(iv) Fesco, Rs 1.9567 per unit ;(v) Mepco, Rs 1.4958 per unit;(vi) Pesco, Re 0.3334 per unit ;(vii) Hesco, Rs 3.3387 per unit ;(viii) Qesco, Rs 1.4611 per unit ;(ix) SPECO, Re 0.1330 and ;(x) Tesco Rs 7.0777 per unit. The average QTA impact will be of Rs 1.2489 per unit.
CPPA-G in its data has included a negative amount of Rs528.9 million on account of capacity charges of Kapco. The Authority noted that Kapco’s PPA was amended by CPPA-G, wherein it has been agreed that plant will be operated without payment of capacity charges from July 2021 onward and only energy charges would be paid.
Upon inquiry from CPPA-G regarding inclusion of capacity charges of negative Rs528.9 million of Kapco, it has been submitted that claimed cost is on account of trueing up of costs pertaining to previous periods as per the PPA.
CPPA-G, although provided some detail in this regard, however, the Authority has decided to provisionally not consider the claimed amount of Kapco and consider it in the subsequent quarterly adjustments, once the same is verified. Accordingly, the negative amount of Rs.528.9 million has been deducted from the claim of Discos.
Copyright Business Recorder, 2023