Discos to collect additional Rs4.45 per unit under QTA

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Tuesday allowed the ex-Wapda distribution companies (XWDiscos) to collect up to Rs4.4547/unit additional charges or cumulative Rs41.94 billion from the consumers in their February-March 2023 bills on account of quarterly tariff adjustments (QTA) for July to September 2022.

For different consumer categories, the per unit cost addition will be in the range of Rs1.4874/unit to Rs4.547/unit, with an average impact of Rs3.30/unit on the consumers.

These state-run distribution companies had sought approval for charging an additional Rs2.18/unit from the consumers on account of quarterly adjustments for the quarter view to transfer the burden of Rs43.337 billion to consumers.

The regulator on November 15, 2022 held a public hearing on the petition of these distribution companies and allowed collection of Rs41.94 billion.

Interestingly, of the total recovery, a major chunk of Rs29.76 billion is as ‘capacity charges’ for private generators. Besides, Rs7.075 billion recovery is allowed on account of the use of system charge (UoSC) and market operator fee (MOF), Rs1.92 billion for variable O&M, Rs7.268 billion on account of transmission and distribution (T&D) losses in monthly fuel charges adjustment (FCA), while a negative adjustment of Rs3.82 billion of incremental units of the industrial sector. Discos’ inefficiency, power losses, and theft in systems would be recovered from loyal consumers in the form of these recoveries.

The Nepra has determined this positive adjustment of Rs41.938 billion on account of variation in capacity charges, variable O&M, additional recovery on incremental sales, use of system charges, market operator fee and fuel charges adjustment (FCA) and impact on transmission and distribution (T&D) losses for the first quarter of FY2022-23.

According to the power regulator’s decision, the discos will collect this additional amount from all power consumers (except K-Electric and life-line consumers) during these two months.

This adjustment will be not applicable to Bl, B2, B3, and B4 industrial consumers to the extent of incremental sales till the continuation of the instant package as per the Authority’s December 1, 2020’s decision.

The federal government had submitted a motion to the Nepra with respect to the recommendations of Support Package for additional consumption and abolition of the Time of Use (ToU) tariff scheme for industrial consumers of XWDISCOs, whereby a rate of Rs12.96/kWh was allowed for Bi, B2, B3 and B4 consumers effective from November 01, 2021, to October 31, 2023.

The residential power consumers who consume up to 300 units of electricity a month (excluding lifeline consumers) will be charged an additional Rs1.4874/unit and consumers of over 300 units will be charged Rs3.2116/unit.

Likewise, the general supply tariff for commercial consumers of sanctioned loads of less than 5kW will be additionally charged Rs2.6847/unit and for 5kW and above, it will be Rs4.4547/unit. For the time of use (ToU) consumers, electric vehicle charging stations (EVCS), general services, the industrial sector, single point supply, agriculture tube wells, street lights, and residential colonies will all be charged with an additional Rs4.4547/units in these four months.

Islamabad Electric Company (IESCO) will collect additional Rs2.657 billion, Lahore Electric Supply Company (LESCO) Rs8.476 billion, Gujranwala Electric Power Company (GEPCO) Rs5.308 billion, Faisalabad Electric Supply Company (FESCO) Rs6.245 billion, Multan Electric Company (MEPCO) Rs10.604 billion, Peshawar Electric Supply Company (PESCO) Rs2.057 billion, Hyderabad Electric Supply Company (HESCO) Rs998 million, Quetta Electric Supply Company (QESCO) Rs3.516 billion, Sukkur Electric Power Company (SEPCO) Rs817 million and Tribal Electric Supply Company (TESCO) Rs1.262 billion.