ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has approved a Quarterly Tariff Adjustment (QTA) of Rs 1.90 per unit for the fourth quarter of FY 2023-24. This adjustment will recover an additional Rs 46.805 billion from Discos and K-Electric (KE) consumers, primarily due to lower electricity demand, reduced utilization of Maximum Demand Indicators (MDI), and AT&C-based load shedding.
NEPRA did not disclose details regarding the financial impact of AT&C load shedding, or the capacity payments made to Independent Power Producers (IPPs) for unused booked capacity. The hearing was conducted by NEPRA Chairman Waseem Mukhtar and other members including Sindh’s Rafique Ahmad Shaikh, Mathar Niaz Rana, Maqsood Anwar Khan, and Amina Ahmed.
Chairman Mukhtar requested media to highlight that despite the adjustment, consumers will see a net benefit of Rs 1.80 on their September 2024 bills due to a Rs 0.31 per unit reduction in the Fuel Charge Adjustment (FCA) for July 2024 and a Rs 0.90 per unit reduction in QTA from the third quarter. The QTA impact for KE consumers will be covered by a government subsidy.
Mukhtar indicated that future tariff adjustments are expected to be minor and unlikely to significantly affect consumer bills if current economic conditions persist.
For the fourth quarter adjustment, Discos have requested the following amounts: Iesco: Rs 926 million, Lesco: Rs 3.995 billion, Gepco: Rs 7.682 billion, Fesco: Rs 4.777 billion, Mepco: Rs 7.909 billion, PESCO: Rs 674 million, Hesco: Rs 5.016 billion, Qesco: Rs 8.078 billion, Sepco: Rs 4.538 billion and Tesco: Rs 3.210 billion.
The Rs 46.805 billion includes Rs 22.867 billion for capacity charges, Rs 3.566 billion for variable O&M, Rs 7.513 billion for Use of System Charges and Market Operator Fee, Rs 11.067 billion for T&D losses, and Rs 1.792 billion for net metering/ SPPs purchases.
NEPRA stated that uniform quarterly adjustments will also apply to KE consumers as per federal policy. Member Shaikh criticized Discos for denying net metering, especially PESCO, which had previously limited net metering to 30% of transformer load but is now allowing 70%. PESCO was also noted for not consuming its full allocation to show lower MDI.
FESCO reported an 8% reduction in sales due to a shift towards solar energy. Member Rana suggested penalties for Discos that underutilize their allocated capacity. NEPRA has called for explanations from Discos regarding AT&C-based load shedding and will take action following an ongoing inquiry.
Member Khan requested detailed reports on allocated and unutilized quotas from the National Power Control Centre (NPCC).
