ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Friday gave its consent to approve Quarterly Tariff Adjustment (QTA) of Rs 52 billion (about Rs 1.45 per unit) for Discos and K-Electric (KE) for third quarter (Jan-March) of current fiscal year, amid concerns of industry about the negative impact on output and impact of roof-top generation on sale of Discos.
Out of total requested positive adjustment of Rs 51.883 billion Rs 31.348 billion is on account of capacity charges to be paid to power generation plants. The QTA will be recovered in electricity bills of July, August and September 2024. However, officials of Power Division requested Nepra to notify QTA adjustment immediately as rebasing of tariff is also on the cards from July 1, 2024.
KE leads discussion on renewable energy trajectory
According to data shared with Nepra, Islamabad Electric Supply Company (IESCO) has sought positive adjustment of Rs 8.170 billion for the third quarter; Lahore Electric Supply Company (LESCO) Rs 13.940 billion, Gujranwala Electric Power Company (GEPCO) Rs 899 million, Faisalabad Electric Supply Company (FESCO) Rs 9.318 billion, Multan Electric Power Company (MEPCO) Rs 3.621 billion, Peshawar Electric Supply Company (PESCO) Rs 14.717 billion, Hyderabad Electric Supply Company (HESCO) Rs 5.413 billion, Quetta Electric Quetta Supply Company (QESCO) Rs 5.389 billion, Sukkur Electric Supply Company (SEPCO) Rs 2.773 billion and Tribal Electric Supply Company (TESCO) Rs 562 million. The total requested amount for variable O&M is Rs 5.571 billion, Use of System Charges (UoSC) and Market Operator Fee (MOP) is Rs 2.581 billion and impact of incremental units is recorded at zero.
According to Nepra, in the light of policy guidelines issued by the federal government for application of uniform quarterly adjustments, the 3rd quarterly adjustment for FY 2023-24 of Discos to be determined by the Authority, shall also be applicable on the consumers of KE.
During public hearing, the officials of Power Division said that net metering is growing massively in the country and presently its cumulative capacity is about 2000-MW.
Chief Executive Officer Sukkur Electric Power Company (SEPCO) said that consumers are installing solar panels for getting electricity instead of paying their bills.
Rafique Ahmad Shaikh, Member Sindh, directed CEO SEPCO to conduct a survey to find out exact number of consumers who have opted for solarisation. He queried as to how people can live without power at 45-degree temperature.
Rehen Jawed, Chairman Nepra and OGRA Standing Committee Korangi Association of Trade and Industry opposed any positive adjustment in QTA, saying that in current situation industry will shut down.
Questions were raised about substantial growth in solarisation in the country, which is reducing Discos’ sale.
“Since generation through solarisation is on increase, who will buy electricity from Discos? Are buy-back rates of generation from solar being reduced,” asked consumers during public hearing.
Responding to the question, Chairman Nepra said that the Authority would look into the net-metering issue, when will be presented before it.
CEO Hyderabad Electric Supply Company (HESCO) informed the Authority that the Disco has severed 5000 connections of defaulters or electricity thieves. He further stated that consumers are shifting to solar panels instead of requesting for reconnection.
Nepra expressed no confidence in the performance of Hesco and absence of CFO in the hearing. Chairman Nepra issued instructions o relevant authorities to serve a show-cause notice to CEO for dismal performance.
Member Sindh also expressed his annoyance at the pathetic performance of Hesco, saying that he feels ashamed at the kind of complaints being revived by him.
Chairman Nepra remarked that Hesco is forcing the Authority towards extreme action, adding that he would personally write a note against Hesco.
Power Division officials present at the hearing said that Power Division would also take action against the Distribution Company.
Copyright Business Recorder, 2024