Inside Financial Markets
Nepra allows Discos to cut tariffs by Re0.99/unit - Inside Financial Markets

Nepra allows Discos to cut tariffs by Re0.99/unit

– Business Recorder

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed Discos to slash tariffs by Rs 0.99 per unit for 4th quarter (April-June) of FY 2020-21 under the Quarterly Tariff Adjustment (QTA) formula.

Nepra held public hearing on November 11, 2021, which was attended by XWDISCOs, CPPA-G, and other stakeholders including general public and media.

Based on the information submitted by CPPA-G, adjustment requests filed by Discos and keeping in view the amount of quarterly adjustment for the 4th Quarter of FY 2020-21, it has been worked out as negative Rs.22.479 billion on account of variation in capacity charges, variable O&M, Use of System Charges (UoSC), Market Operator Fee (MOF) and FCA impact on T&D losses.

According to the determination section 31(4) of the NEPRA Act, 1997 gives powers to the Authority to determine a uniform tariff, and further prescribes the manner, methodology and principles to be applied while determining the same. The Authority accordingly has determined the impact of 4th quarterly adjustment on uniform basis, which shall be reflected in the monthly bills of consumers of all Discos, and any excess/less adjustment would be settled between Discos at CPPA-G level.

The Authority has determined a negative uniform rate of Rs.0.9908/kWh, for the allowed negative amount of quarterly adjustments of Rs.22.479 billion pertaining to the 4th quarter of the FY 2020-21, across each category of consumers of Discos (except lifeline and protected category consumers), based on notified projected sales, after excluding therefrom the sales to life line and protected category consumers, to be recovered in three months, to be effective from February 1, 2022.

The Authority states that although the proposed quarterly adjustments are formula based and as per the already prescribed mechanism but the impact of any such adjustments has to be made part of the consumer end tariff, hence, it decided to conduct a hearing on the issue to provide an opportunity of hearing to all the concerned and meet the ends of natural justice.

Syed Zaki Hussain

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