Islamabad   -   The National Electric Power Regulatory Authority (Nepra) on Wednesday reserved its verdict on a petitions of ex-Wapda Discos to recover around Rs93 billion from power consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate.

NEPRA has conducted public hearing on the petitions of the power division, central power purchasing agency (CPPA) and some distribution companies for their common request to pass on about Rs93 billion impact of quarterly adjustments for the fiscal 2018-19, annual adjustment on prior period cost and distribution margin indexation with inflation & exchange rate.

The public hearing was presided over by NEPRA Chairman, Taufeeq Farooqi, the regulator heard the arguments of all the petitioners.

In their petitions the Discos had demanded Rs33 quarterly adjustments while three Discos of Lahore, Islamabad and Faisalabad had demanded an additional recovery of Rs30 billion under their multi-year tariff (MYT) adjustment mechanism for fiscal year 2019-20.

Initially ex-Wapda Discos have sought permission to transfer the burden of Rs63.407 billion to consumers on the account of quarterly adjustments for the fiscal 2018-19 and annual adjustment on prior period cost. However during hearing, Nepra explained that it had also received another application from the power division for another additional requirement of Rs30 billion revenue for recovery from consumers on account of inflationary impact on operation and maintenance cost of the operations of the power companies for the above period.

Suring hearing the representatives of the power division and CPPA pleaded that out of additional requirement of Rs30 billion for inflationary impact, an amount of Rs19 billion should be passed on to consumers, provisionally, along with quarterly adjustments and hold a separate hearing to deal with the matter for future.

The request for additional Rs30 billion was opposed by Nepra’s case officers taking the stance that Discos were previously allowed Rs24 billion recovery from consumers on account of bad debts for one year with the condition that these write offs would have to be approved by their respective board of directors. However, the discos were recovering this additionally for 18 months without a report if their boards had approved the previous write off. The Nepra directed the discos to submit written reports on the matter.