First quarter FY24-25: Discos seek Nepra nod for Rs8.7bn recovery from power consumers

ISLAMABAD: The power distribution companies (Discos) have sought Nepra’s approval for recouping Rs8.7 billion from power consumers across Pakistan.

The recovery pertains to various adjustments for the first quarter of the fiscal year 2024-25, spanning July to September 2024. This recovery has a major chunk of over Rs8 billion as capacity charges from the power consumers to be paid to private power generators.

Once the Nepra determines the per unit additional charges for Discos, the same will apply to the K-Electric too, as the federal government has already issued policy guidelines on this uniform applicability.

The power regulator has decided to hold a public hearing on the petition on 20 November, 2024. Discos in their petition had demanded an increase in tariff on account of capacity charges, transmission charges, market operation fees, use of system charges, impact of transmission and distribution (T&D) losses on FCA and other variable operation and maintenance charges for the quarter.

As per the petition, Islamabad Electric Company (Iesco) had sought additional adjustment of Rs1.746 billion, Gujranwala Electric Power Company (Gepco) Rs2.66 billion, Multan Electric Company (Mepco) Rs14.884 billion, Peshawar Electric Supply Company (Pesco) Rs4.02 billion, Quetta Electric Supply Company (Qesco) Rs2.155 billion and Sukkur Electric Power Company (Sepco) Rs539 million.

Whereas, Lahore Electric Supply Company (Lesco) will refund Rs672 million, Faisalabad Electric Supply Company (Fesco) Rs947 million, Hyderabad Electric Supply Company (Hesco) Rs870 million and Tribal Electric Supply Company (Tesco) Rs1.12 billion.

Of the total amount of Rs8.71 billion, Discos have sought to include Rs8.06 billion on account of capacity charges, Rs1.653 billion on account of use of system charge (UoSC) and market operator fee (MOF) and Rs1.25bn for variable O&M charges. Discos’ inefficiencies, power losses and theft in systems would be recovered from loyal consumers in the form of these recoveries. The 18 percent GST on this amount will add up another burden of Rs1.566 billion on power consumers.