The National Electric Power Regulatory Authority (Nepra) on Tuesday deferred hearing for a tariff increase of Rs0.86 per unit requested by ex-Wapda distribution companies following unsatisfactory response from power firms.
At the public hearing presided over by Nepra Chairman Tauseef H Farooqi, the regulator expressed dissatisfaction over the response of power companies to the tariff hike petition on account of variation in power purchase price (PPP) for the fourth quarter of 2019-20.
The total impact of the tariff increase is expected to be around Rs85 billion. At the hearing, the regulator demanded justification from various distribution companies for the tariff adjustment but the companies failed to satisfy it.
Nepra Vice Chairman Saifullah Chatta said since consumers had to bear the burden of tariff increase, justification was necessary for the hike in power price.
Nepra directed the Central Power Purchasing Agency (CPPA) to provide justification for the quarterly tariff adjustment. It put off the hearing for one week. Nepra chairman emphasised that chiefs and chief financial officers of all ex-Wapda distribution companies and the CPPA should ensure their presence in the next meeting.
For the capacity purchase price, the distribution companies had claimed Rs81.109 billion while for variable operation and maintenance, Rs567 million had been claimed.
On account of impact of transmission and distribution losses on the monthly fuel price adjustment, the distribution companies (except for Quetta Electric Supply Company) showed savings of Rs1,249 million.
For the capacity purchase price, Islamabad Electric Supply Company demanded Rs7,717 million, Lahore Electric Supply Company Rs16,300 million, Gujranwala Electric Power Company Rs8,415.31 million, Faisalabad Electric Supply Company Rs10,918 million and Multan Electric Power Company Rs1,556 million.
Similarly, Peshawar Electric Supply Company demanded Rs11,706 million, Hyderabad Electric Supply Company Rs4,206 million, Quetta Electric Supply Company Rs3,061 million, Sukkur Electric Power Company Rs2,860 million and Tribal Areas Electric Supply Company Rs370 million.
It is worth mentioning that in September 2020, Nepra allowed ex-Wapda distribution companies a tariff increase of Rs1.6236 per unit under quarterly adjustments for the second and third quarters of 2019-20. This is expected to enable the power firms to collect Rs164.870 billion from consumers in the next one year.
Published in The Express Tribune, November 25th, 2020.
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