NEPRA rejects Rs28b collection from consumers

Directs power distribution firms to resubmit data for quarterly adjustment

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) on Wednesday rejected a request of power distribution companies for the transfer of Rs28 billion burden to power consumers on account of quarterly adjustments and asked the petitioner to resubmit the data.

At a public hearing of a petition pertaining to the quarterly power purchase price adjustment for the first quarter (July-September) of financial year 2021-22, Nepra expressed dissatisfaction over the data submitted by the distribution companies.

Presiding over the hearing, Nepra Chairman Tauseef Farooqi said that the calculation of power tariff was vague.

The authority also questioned the imposition of capacity charges on the electricity units consumed under the Industrial Support Package.

Nepra Vice Chairman Rafiq Shaikh pointed out that the tariff determined for the Industrial Support Package was Rs12.96 per unit and questioned why power companies were demanding capacity charges.

Nepra was conducting the hearing on the quarterly adjustments demanded by the distribution companies on account of capacity charges, transmission charges, variable operation and maintenance charges and impact of transmission losses on fuel charges adjustments for the first quarter of 2021-22.

Power distribution firms had requested Nepra to allow the transfer of Rs28 billion burden to the consumers on account of quarterly adjustments.

Nepra rejected the data submitted by the distribution companies. Its chairman asked the distribution firms to submit fresh data in a week. The regulator will hold a hearing on the new data.

Published in The Express Tribune, February 24^th, 2022.

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