Power distribution firms seek 16-50pc increase in tariff

Published August 22, 2014
Peshawar Electric Supply Company (Pesco) has claimed Rs36bn compensation on account of prior year adjustments not recovered so far. — Photo by AFP
Peshawar Electric Supply Company (Pesco) has claimed Rs36bn compensation on account of prior year adjustments not recovered so far. — Photo by AFP

ISLAMABAD: The distribution companies of ex-Wapda have sought an increase in electricity tariff for current fiscal year by 16-50 per cent for various consumer groups to meet their annual revenue requirements.

The National Electric Power Regulatory Authority (Nepra) has started public hearings to conclude its tariff determination. It has decided to take up the petitions of Peshawar and Faisalabad electric supply companies within a week.

The two distribution companies have sought increase in tariff on the basis of inflationary impact, increase in regulatory asset base, expansion of network, construction of grids, increase in salaries, additional cost of repair and maintenance and depreciation.

The distribution companies have also claimed that they need be given the adjustment of prior year adjustment not recovered in 2013-14 due to court cases and other implementation delays under government instruction and losses occurred as a result of inconsistent and non-transparent application of multi-year tariff.

For example, Peshawar Electric Supply Company (Pesco) has claimed Rs36bn compensation on account of prior year adjustments not recovered so far. It said inclusion of 20pc losses allowed in tariff by Nepra for recovery from consumers and has demanded 29pc losses be charged to consumers.

The two companies have also demanded working capital and the cost of creating new sub-divisions, advocating that existing distribution margin was not enough to meet their revenue requirements for 2014-15.

According to tariff petitions, Pesco has demanded a 50pc increase in tariff for lifeline consumers of using less than 50 units per month. It has sought 38pc increase in tariff for first 100 units of domestic consumers, 15pc increase for 100-300 units and 21pc increase for above 700 units.

Pesco has demanded 32pc increase in tariff for off-peak commercial consumers and 43pc for peak consumption. Likewise, Pesco has sought 35pc increase in tariff for industrial consumers and 40pc increase in peak consumption.

For agricultural consumers, the Peshawar-based distribution company has sought 29-38pc increase in tariff.

Likewise, the Faisalabad Electric Supply Company (Fesco) has demanded 22pc increase in tariff for first 100 units of domestic consumers but has not touched lifeline consumers.

It has demanded 20pc increase in tariff for 101-300 units, 26pc increase for 301-700 units and 25.7pc for above 700 unit consumption in domestic sector.

Fesco has also sought 21pc increase in small commercial consumers, 15pc increase for off-peak consumption and 21pc for peak consumption for larger commercial consumers.

Similarly, it has demanded 16pc in tariff for industrial consumers and agricultural consumers.

Published in Dawn, August 22nd, 2014

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