Islamabad    -   The National Electric Power Regulatory Authority (Nepra) has allowed ex-Wapda Discos an increase of Rs0.53 per unit in the power tariff for the third and fourth quarters of the 2018-19.

The Nepra’s decision will authorize Discos to recover Rs53.52 billion or Rs0.5272 per unit from the power consumers in the twelve-month period.

It is worth mentioning here that on Wednesday Nepra had reserved its verdict on petitions filed by ex-Wapda Discos for the recovery of around Rs93 billion from the consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate.

Initially, discos had sought permission to transfer the burden of Rs63.407 billion to consumers on account of quarterly adjustments for the fiscal year 2018-19, and annual adjustment on prior period cost.

However, during the hearing, Nepra explained that it had also received another application from the power division for the recovery of additional Rs30 billion from consumers on account of inflationary impact on maintenance cost of operations of power companies for the above period.

During the hearing, the representatives of the power division and CPPA pleaded that out of Rs30 billion, an amount of Rs19.7 billion should be passed on to consumers, provisionally, along with quarterly adjustments and a separate hearing be held to deal with the matter for future.

Nepra, on Friday, issued two notifications of quarterly/ biannual adjustments in the matter of XWDISCOs and interim relief in distribution margin indexation, inflation and exchange rate. In its first decision that covers the period from January 1, 2019 to June 30, 2019, the total impact of increase in tariff is Rs33.750 billion that is translated into Rs0.3324 per unit.

NEPRA determined a uniform rate of Rs.0.3324 per unit for the allowed amount of quarterly adjustment of Rs.33, 750 million across each category of consumers of XWDISCOs, to be recovered in 12 months, based on projected sales for the FY 2017-18, after excluding life line consumers.

Since, the power to impose surcharges has been snatched from the federal government through amendment in the NEPRA Act, therefore, the federal government while notifying the allowed uniform rate of Rs0.3324/kWh shall not adjust the same upwards for any consumer category.

The second decision by the power regulator is of interim nature that allows the power distribution compaAnies a provisional increase of Rs19.7 billion. This provisional increase is on the already notified tariff, and would be subject to adjustment as per the final decision of the Authority in this regard. The impact of this decision translates into Rs 0.1947 per unit.

The Authority, however, keeping in view submissions of the Ministry of Energy that the distribution companies under single year tariff regime may require some time to file their tariff petitions in line with the amended Act and at the same time being cognizant of the financial constraints of the power sector, has decided to allow an increase of Rs14 billion in the already notified tariff, strictly on provisional/interim basis subject to its adjustment once the tariff determinations of the XWDISCOs under Single Year Tariff Regime is finalised by the Authority.

The Authority has also decided to allow an increase of Rs5.772 billion in the already notified tariff of these distribution companies on interim/provisional basis, subject to its adjustment based on the required information, which is not available at this point in time.

The National Electric Power Regulatory Authority on the request of Ministry of Energy has revised power tariff for XW DISCOs on account of annual adjustment / indexation of distribution margin.

The federal government will announce its decision on today’s development soon. It is pertinent to note here that only recently, in July 2019, power tariff was upped by around Rs1.8 per unit.