NEPRA completes hearing process on DISCO’s plea to increase power tariff under QTA mechanism

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Tuesday completed a hearing process on the request submitted by all Power Distribution Companies (DISCOs) except K-Electric to increase their power tariff on account of Quarterly Tariff Adjustment (QTA) mechanism.

NEPRA’s hearing was held on Tuesday under the Chairman NEPRA Tauseef H. Farooqi to consider DISCOs’ plea to increase the power tariff for their respective power consumers under QTA mechanism. NEPRA’s members Engineer Rafique Ahmed Shaikh and Engineer Maqsood Anwar were in attendance.

Sources in the power sector said that if NEPRA allows recovery of above Rs 43 billion from the consumers of ten DISCOs then the power tariff of these DISCOs will go up by approximately Rs 2.18 per unit for first quarter (July-September) CFY 2022-23.

The increase in electricity tariff was sought on account of capacity charges, variable O&M, Use of System Charge (UoSC) and Market Operator Fee (MOF), impact of T&D losses on monthly FCA and additional recovery on incremental sales, sources added.

According to NEPRA, if the Authority (NEPRA) grants approval to increase the power tariff of all DISCOs then this hike in power price will be applicable on all categories of power consumers except lifeline consumers and the consumers of K-Electric as well.

“The Authority will issue its detailed judgement after necessary scrutiny of the data,” said NEPRA.

Earlier, 10 DISCOs including FESCO, GEPCO, HESCO, IESCO, LESCO, MEPCO, PESCO, QESCO, SEPCO and TESCO have sought a total adjustment of Rs 43,337 million for the first quarter (July-September) CFY 2022-23 under QTA mechanism.

Out of the total adjustment, DISCOs sought adjustment of Rs31 billion under the head capacity charges, Rs2.169 billion worth adjustment under variable O&M, Rs6.341 billion adjustment on account of Use of System Charges (UoSC) and Market Operator Fee (MOF), Rs 7.408 billion as Impact of T&D (Transmission and Dispatch) losses on monthly Fuel Charges Adjustment (FCA) and additional recovery on incremental sale of Rs4.248 billion.

According to DISCOs application, FESCO has sought Rs6.377 billion, GEPCO Rs5.337 billion, HESCO Rs450 million, IESCO Rs2.704 billion, LESCO Rs9.101 billion, MEPCO Rs10.688 billion, PESCO Rs2.129 billion, QESCO Rs3.663 billion, SEPCO Rs905 million, and TESCO sought Rs1.282 billion respectively.

 

Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected]

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