DISCOs allowed to charge extra Rs1.75/unit

The National Electric Power Regulatory Authority (Nepra) has sanctioned an additional charge of Rs1.75 per unit for state-owned distribution companies and the privatised K-Electric, effective over the next three months.

The adjustment is intended to recover Rs43.23 billion through quarterly tariff modifications for the fourth quarter of 2023-24, spanning from April to June 2024.

During a public hearing on August 26, Nepra Chairman Waseem Mukhtar presided over a session where Discos reported that the adjustments were primarily due to lower sales compared to projections for the quarter.

Nepra noted that some Discos, such as PESCO, failed to meet their energy demand and resorted to load shedding, which reduced their capacity charge share and contributed to diminished sales.

These companies had initially sought an additional collection of Rs1.9 per unit.

The Central PowerPurchasing Agency (CPPA) had requested Rs51 million for legal expenses related to local and international proceedings as part of the quarterly adjustment.

However, Nepra rejected the request, citing that such costs were already covered by the Market Operation Fee (MoF), with Rs500 million approved for legal charges for FY 2023-24.

Additionally, CPPA included Rs72.23 million in its plant-wise data for KAPCO charges related to tax differentials from July 1 to October 24, 2022, but this amount was not considered by the authority.

Nepra also adjusted the Rs73.18 million charged by CPPA-G to Discos for the PPIB fee as part of the PMLTC invoice for January 2024, with the PPIB matter still under separate proceedings.

Nepra determined a positive adjustment of Rs43.23 billion based on variations in capacity charges, variable O&M, additional recovery on incremental sales, system use charges, Market Operator Fee, and FCA impact on T&D losses for the fourth quarter of FY 2023-24.

The adjustment, at a uniform rate of Rs1.7432 per unit, will be applied from September to November 2024 across all consumer categories, except lifeline consumers.

In a separate directive, Nepra instructed Discos to refund Rs0.3692 per unit to consumers on their September bills as part of the Fuel Charges Adjustment (FCA) for July 2024.

The FCA refund applies to all consumer categories except lifeline consumers, domestic consumers up to 300 units, Electric Vehicle Charging Stations (EVCS), pre-paid electricity consumers, and agricultural consumers across all XWDISCOs.

The FCA adjustment also includes domestic consumers with Time of Use (ToU) meters, regardless of consumption level.