NEPRA okays govt’s winter electricity plan

The national power regulator has approved the federal government’s incentive package for fixing the electricity tariff at Rs12.96 per unit for incremental consumption for four winter months – from November 1, 2021 to February 28, 2022.

In its decision in the matter of a motion filed by the federal government with respect to winter incentive package for electricity consumers on incremental consumption of XWDISCOs and K-Electric, the National Electric Power Regulatory Authority (Nepra) said it had no objections in approving the proposal submitted by the energy ministry.

XWDISCOs are distribution companies that were formerly affiliated with the Water and Power Development Authority (Wapda).

In a public hearing on the federal government motion, Nepra noted that the energy ministry might explore the options of reducing AT&C-based (technical and commercial losses and shortage due to non-realisation of billed amount) load shedding that could not only result in improved sales growth but also result in improved recoveries.

As per the decision, the package shall be applicable for winter months i.e. from November 1, 2021 till February 28, 2022. The rate of Rs12.96/kWh shall be charged from domestic consumers (non-ToU) on monthly 300 units or above consumption in the corresponding months.

Commercial and general services consumers would be charged at a rate of Rs12.96/kWh on the incremental consumption in the corresponding months. A rate of Rs12.96/kWh shall be charged from domestic consumers (ToU) and commercial consumers (ToU) on the respective peak/off-peak incremental consumption.

Read More: NEPRA approves tariff hike of Rs1.95 per unit

New and existing consumers having no reference consumption available in period of November 2020 to February 2021 shall be offered the same package at the concessionary rate of Rs12.96/kWh through a benchmark consumption methodology.

No quarterly adjustments would be applicable on incremental consumption. On incremental consumption, only positive fuel price adjustments shall be passed on to the consumers availing the package.

For K-Electric, the authority approved the winter incentive package in principle, however, since the mechanism for verification of the marginal cost and the adjustment in tariff of the power company for incremental sales required detailed calculations and discussions with the energy ministry. Therefore, a separate decision in this regard will be issued once the required mechanism is finalised.

In September, the Cabinet Committee on Energy (CCoE) had approved a flat tariff of Rs12.96 per unit for electricity consumers across the country on additional consumption for four winter months in an effort to promote use of electrical appliances for heating room and water.

In the same month, the government had decided to give am additional supplementary grant of Rs1.3 billion to K-Electric consumers to implement the winter incentive package for electricity consumers on incremental consumption.