ISLAMABAD: While completing the process for Rs1.90 per unit additional quarterly tariff adjustment in electricity rates across the country, the National Electric Power Regulatory Authority (Nepra) censured all the power companies on Monday for discouraging solar net metering to consumers.

At a public hearing presided over by Nepra Chairman Waseem Mukhtar, the Central Power Purchasing Agency (CPPA) — the commercial agent of the power companies — demanded about Rs46.8 billion in additional recoveries from consumers of ex-Wapda distribution companies (Discos) for electricity they consumed in the last quarter (April-June) of 2023-24.

The proposed Rs1.90 per unit additional quarterly tariff adjustment (QTA) would be charged to consumers from September to November across the country, including Karachi, facilitating power companies to mop up another Rs46.8bn from consumers. On approval, the adjustment would be recovered uniformly from all consumers except for lifeline using less than 100 units per month.

A Nepra case officer said the Rs46.8bn projection was for ex-Wapda Discos and KE’s impact would be worked out on the basis of the element of subsidy meant for uniform tariff rates throughout the country.

Nepra rebukes Discos for discouraging net metering

The CPPA claimed an additional impact of Rs22.8bn on account of capacity charges over and above charged in base tariff, followed by Rs11.1bn for transmission and distribution loss impact on fuel costs, Rs7.5bn for use of service charges and market operation fee (UoSC & MOF), Rs3.6bn for variable operation and maintenance and Rs1.79bn cost for small power producers and net metering.

Nepra’s member from Khyber Pakhtunkhwa, Maqsood Anwar, was perturbed over recurring QTAs, particularly given the fact that consumers were also charged Rs1.90 per unit QTA for the third quarter (January to March) or Rs46.6bn. He asked the power companies to provide a record of the electricity quota allocated to them, details of their actual utilsation and unutilised units, and the reasons thereof by individual Discos.

Member Sindh Rafique A Shaikh also questioned as to why the capacity payments were rising. Dissatisfied with answers, the CPPA was asked to provide justifications in writing at the earliest. Mr Shaikh also criticised the power companies for discouraging consumers from net metering and under what law. He particularly censured Peshawar, Gujranwala and Hyderabad electric supply companies for refusing green meters.

He was told that boards of directors of certain Discos were on board moves to slow down net metering. Mr Shaikh, who also looks after the consumers affairs division, said the regulator would not allow harassment of consumers and BODs were not above the law and the Nepra regulations.

The quarterly adjustments for Discos are now automatically applicable to KE’s consumers as well as per recent decisions of the government and the regulator. The increase has been sought by the Discos to finance the additional financial impact of capacity charges arising out of currency devaluation and interest rates besides the market operator fee, the impact of transmission and distribution losses on fuel cost adjustments, variable operation and maintenance charges for the third quarter of the current fiscal year.

Published in Dawn, August 27th, 2024