ISLAMABAD: The government has decided to pass on 51 paise per unit increase in electricity rates for consumers of K-Electric for three months starting Nov 1, while ex-Wapda distribution companies (Discos) have sought more than Rs2 per unit increase in tariff to raise about Rs43 billion in additional revenue in three months.

The federal government has asked the National Electric Power Regulatory Authority (Nepra) to notify 51 paise per unit additional charge from all KE’s consumers except domestic lifeline with effect from November to January 2023.

Nepra had already approved the increase in KE’s tariff a few months ago under quarterly tariff adjustment for the third quarter (January to March) of FY22 but the government had not passed on the increase to consumers. Therefore, it would just be a formality for Nepra to issue a fresh schedule of tariff for KE by condoning a delay in notification on the request of the federal government.

In a letter to Nepra, the Power Division has asked a modified uniform tariff be notified to maintain the same rate across the country as the base tariff for Discos had already been notified last year to enable recovery of revenue requirements of KE as determined by the regulator.

Discos seek Rs2 hike to raise additional Rs43bn

“Such adjustment shall be applicable on the consumption of September, October and November of 2022 to be recovered from consumers in November and December and January 2023”, the Power Division told Nepra.

It said the request had been filed with the September 30 approval of the Economic Coordination Committee (ECC) of the Cabinet subsequently endorsed by the federal cabinet regarding tariff rationalisation for KE.

It was reported that Nepra had determined on July 29 periodic adjustments in tariff for the third quarter of FY22 for ex-Wapda Distribution Companies and a uniform rate was charged to consumers.

Under the National Electricity Policy 2021, the government may maintain a uniform consumer-end tariff for K-Electric and state-owned distribution companies.

That is why the ECC has approved tariff rationalisation by way of adjustments at Rs0.5087/unit with a recovery period of three months for K-Electric to maintain the uniform tariff across the country.

The ECC had decided the recovery of an additional charge of 51 paise per unit with effect from Oct 1 but cabinet approvals and its formal notifications delayed the implementation. Therefore, the recovery would now begin with effect from Nov 1.

Separately, Discos have filed requests for a combined additional revenue of Rs42.634bn for the first quarter (July-September) FY23 with an average impact of slightly over Rs2 per unit for all consumers. Nepra has called a public hearing on Discos’ request on Nov 15.

Under the separate petitions, the biggest revenue requirement of Rs10.7bn has been sought by Multan Electric, followed by Rs9.1bn by Lahore Electric and then 6.4bn by Faislabad Electric.

Likewise, Gujranwala Electric has demanded additional revenue of Rs5.34bn, followed by Quetta Electric with Rs3.66bn and Islamabad Electric with Rs2.7bn. Peshawar Electric, Tribal Electric, Sukkur Electric and Hyderabad Electric have pleaded for an additional revenue requirement of Rs2.13bn, Rs1.28bn, Rs905m and Rs450m respectively.

Published in Dawn, November 3rd, 2022

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