Nepra mulls 20 paisa per unit cut in tariff adjustment

Published November 12, 2021
A technician from K-Electric fixes new electricity meters at a residential building in Karachi. — AFP/File
A technician from K-Electric fixes new electricity meters at a residential building in Karachi. — AFP/File

ISLAMABAD: The Nati­onal Electric Power Regul­atory Authority (Nepra) is likely to absorb about 20 paisa per unit reduction in quarterly tariff adjustment in various tariff increases.

The regulator on Thursday conducted a public hearing on a petition of the Central Power Purchasing Agency (CPPA) for refund of paisa 20 per unit to consumers of power Distribution Comp­anies (Discos) under the Quarterly Tariff Adjustment (QTA) for the fourth quarter of fiscal year 2020-21 (4QFY21), determined for various items and reserved its judgement.

The hearing was presided by Nepra Chairman Nep­ra Tauseef H Farooqi. Nepra Vice Chairman, Rafi­que Ahmad Shaikh, Member Balochistan, Rehmatullah Baloch and Member Khyber Pakhtunkhwa Maqsood Anwar Khan also attended the meeting.

According to the data submitted by CPPA-G on behalf of Discos, a negative adjustment of Rs20.349 billion was sought for the 4QFY21. This included an amount of Capacity Purchase Price (CPP) of Rs6.121bn, variable O&M of Rs14.896bn, Use of System Charges (UoSC) Rs1.622bn, impact of T&D losses on monthly fuel cost adjustment (FCA) of Rs965 million and supplementary CPP invoices of Rs11m.

The chief executive officers of Iesco, Fesco and Sepco were quizzed on higher and lower capacity charges and Use of System charges, respectively.

During the hearing, Mr Naveed of CPPA said the main reason for the negative QTA for fourth non-payment of Rs23bn to Water and Power Development Authority (Wapda) was due to the suspension of tariff for Neelum Jhelum Hydropower project and the reference rate of dollar at Rs168, which was actually Rs153.

Published in Dawn, November 12th, 2021

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