ISLAMABAD – The National Electric Power Regulatory Authority (NEPRA) has received petitions requesting an increase in tariff for ex-Wapda Power Distribution Companies (XWDiscos) and KE by Rs 2.10 per unit and Re0.5087 per unit, respectively. As a result, electricity consumers are likely to experience another price increase.
The ex-Wapda Power Distribution Companies (XWDiscos) have petitioned the regulator to grant them permission to pass along an additional burden of Rs 42.6 billion to electricity consumers in order to cover quarterly adjustments for the first quarter (July-September) of FY2022-23 under the QTA mechanism.
If NEPRA approves the XWDiscos request, power customers would pay Rs2.10/unit more. With regard to capacity fees, transmission fees, market operation fees, the impact of T&D losses on FCA, and variable operation and maintenance fees for the first quarter of FY2022-23, XWDiscos has requested an increase in its appeal to NEPRA (July to September 2022).
LESCO has requested positive adjustments totaling Rs2.704 billion, LESCO Rs 9.101 billion, GEPCO Rs5.337 billion, FESCO Rs6.377 billion, MEPCO Rs 10.688 billion, PESCO Rs 2.129 billion, HESCO Rs 450 million, QESCO Rs 3.663 billion, SEPCO Rs 905 million, and TESCO Rs 1.282 billion, according to Discos petition.
According to the National Electricity Policy, 2021, the government may incorporate direct or indirect subsidies to preserve a uniform consumer-end tariff for K-Electric and state-owned distribution businesses (even after privatization). As a result, the Authority must modify the KE applicable uniform variable fee in accordance with the XWDlSCOs in order to recover KE’s revenue requirements.
The federal government has given its approval, and it was agreed to send it to the Authority for review in accordance with the Act’s requirements.
Given the above, the federal government has filed an immediate motion under sections 7 and 31 of the Act, read in conjunction with Rule 17 of the Rules, regarding the consumer end tariff recommendations of KE.
The motion asks the Authority to reconsider and issue for KE a modified uniform variable charge in order to maintain a uniform tariff across the nation and to recover the revenue needs of KE as determined by the Authority while taking into account the proposed targeted subsidy and cross-subsidies.
Following the incorporation of tariff rationalization, the Authority is hereby requested to issue separate SoT with the potential application of applicable uniform rates.
To be recovered from customers in November 2022, December 2022, and January 2023, respectively, this adjustment will be applicable to consumption in September 2022, October 2022, and November 2022. On November 8, 2022, NEPRA will hold a public hearing on the Federal Government’s request for a rise in the KE tariff, while the hearing on the XWDiscos petition will take place on November 15, 2022.