Periodic tariff adjustment: Power consumers to pay extra Rs1.55/unit for three months

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday allowed power distribution companies to increase their tariff by Rs1.55 per unit on account of periodic adjustments for three consecutive months starting from July 2022.

The ex-Wapda distribution companies (Discos) will collect an additional Rs39 billion from power consumers as adjustment for the second quarter (Oct-Dec 2021-22). The rise in tariff will not affect lifeline consumers (using less than 100 units a month) and incremental industrial sales for the Industrial Support Package. It is to be noted here that earlier, the Nepra had allowed the Discos to increase their tariff by Rs0.517 per unit on account of adjustment for three consecutive months starting from August for the first quarter (July-Sept 2021-22) to collect Rs14.3 billion.

The Nepra on Thursday issued its decision on this matter and said that quarterly adjustments would not be passed on to B1, B2, B3, and B4 industrial consumers to the extent of incremental sales till the continuation of the instant package, according to the Nepra’s earlier decision dated December 1, 2020. This increase in the electricity tariff will not be applicable to lifeline consumers and K-Electric consumers. Furthermore, the Nepra has conveyed its decision to the federal government, prior to its notification in the official gazette as per Section 31 (7) of the Nepra Act.

The authority has approved a positive amount of Rs39 billion on account of quarterly adjustment pertaining to the 2nd quarter of FY2021-22 for the Discos to be recovered from power consumers. Based on the adjustment mechanism, as prescribed in the notified tariff, the Nepra has already determined quarterly adjustments of Discos till June 2021. And the Discos now in line with the prescribed quarterly adjustment mechanism filed its adjustment requests for the 2nd quarter of FY2021-22, i.e. from October to December 2021. The Nepra hearing in the matter was held on April 28, 2022.

Since the adjustment is being made in the already-notified uniform tariff, the authority has determined the impact of the 2nd quarterly adjustment on a uniform basis along with the Disco-wise rate, which shall be reflected in the monthly bills of consumers of all the Discos, and any excess/less adjustment would be settled among the Discos at the CPPA-G level.