According to the decision issued by NEPRA on the petition of the XWDiscos for the quarterly adjustments, the regulator has said that the additional burden will be transferred during the months of February and March and will have an average impact of Rs 3.30/unit on the consumers. The decision will increase the per unit cost of various categories of consumers from Rs1.4874/unit to Rs 4.547/unit. The NEPRA decision has deprived the electricity consumers from Rs 3.30/unit relief which they were expecting, after January, at the end of the 4th quarter adjustments. Now the consumer will continue to pay an additional Rs 3.30/unit for the next two months of February and March. In its petition, XWDiscos had sought NEPRA approval for charging an additional Rs2.18/unit from the electricity consumers on account of quarterly adjustment for the 1st quarter (July to September) of FY2022-23. XWDiscos had sought NEPRA’s nod for transferring the burden of Rs 43.337b to the electricity consumers on account of capacity charges, transmission charges and market operation fee, impact of T&D losses on FCA and variable operation and maintenance charges for the 1st quarter of FY 2022-23.
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It is worth mentioning here that during hearing on the XDiscos petition for quarterly adjustments, Chairman NEPRA Tauseef.H.Farooqi had said that the amount of Rs 43b claimed by the Discos is too much and added that “We thought that after the rebasing of the electricity tariff, the quarterly adjustment amount will be reduced.” CPPA-G has included legal charges of Rs.4.21 million as part of capacity charges. The Authority has decided not to include the amount of legal charges requested for the 1t quarter amounting to Rs.4.2 million and also the amount of Rs.545.55 million requested for the previous quarters on the same account, while working out the instant quarterly adjustments.
According to the information submitted by CPPA-G and adjustment requests filed by XWDISCOs, the Authority has decided to restrict the amount of quarterly adjustment for the 1st Quarter of FY 2022-23, as requested by XWDISCOs on account of variation in capacity charges, variable O&M, use of system charges and market operator fee. However, regarding FCA impact on T&D losses, since the Authority’s decision in the matter of monthly FCA for September 2022 was not finalized till the submissions of quarterly adjustment requests by DISCOs, therefore, the same has been worked out based the approved monthly FCAs. Similarly, for working out the impact of recovery of fixed cost on incremental sales, the data of incremental units as provided by CPPA-G has been considered, as few of the DISCOs did not provide the required information in their adjustment requests.
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After making the adjustments, the Authority has determined a positive adjustment of Rs.41.939b on account of variation in capacity charges, variable O&M, additional recovery on incremental sales, use of system charges, market operator fee and FCA impact on T&D losses for the 1st quarter of FY2022-23. Ministry of Energy, during the hearing and also vide letter 28.11.2022, requested to apply this quarterly adjustment of FY2022-23 in a period of two months i.e. February and March 2023, without changing the consumer rates. The Ministry submitted that quarterly adjustment for the 1st quarter of FY 2022-23 is expected to be recovered from Dec. 2022 to Feb. 2023 at Rs.2.45/unit. Nepra further said that consumers were being charged Rs 3.30/unit for the 4th quarter adjustment of FY2021-22, which is effective till January 2023. In case of recovery of quarterly adjustments in two months, the customer will pay only the previous adjustment of Rs 3.30/unit. This would help recover the impact of quarterly tariff adjustment for the 1st quarter of FY 2022-23 without any increase in consumer end rates.
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In its decision the regulator has allowed Iesco positive adjustments of Rs 2.657b against the demanded adjustments of Rs2.704b, Lesco Rs8.476b against the demanded Rs 9.101b, Gepco Rs 5.308bn against Rs5.337b, Fesco Rs 6.245bn against Rs6.377b, Mepco Rs10.604b against Rs 10.657b, Pesco Rs2,057b against Rs 2.129b, Hesco Rs 99 million against Rs 1.184b, Qesco Rs3.516b against Rs 3.663b, Sepco Rs 817 million against Rs 905 million and Tesco Rs 1.262bn against Rs 1.282bn respectively. The per unit impact on Iesco will be Rs 1.97/unit, Lesco Rs2.76/unit, Gepco Rs 4.06/unit, Fesco Rs 3.26/unit, Mepco Rs4.80/unit, Pesco Rs1.25/unit, Hesco Rs 1.77/unit, Qesco Rs 4.09/unit, Sepco Rs 2.31/unit, and Tesco Rs 3.62/unit. XWDiscos have been provided Rs 46.026b adjustments which included Rs29.761b on account of capacity charges, Rs7.075b on account of UOSC & MOF, variable O&M Rs1.922b, Rs7.268bn on account of T&D losses in monthly FCA. However, after applying negative adjustment of Rs3.728b on recovery of incremental units and not allowing KAPCO & legal charges, the total allowed amount to be charged from the consumers, on account of quarterly adjustments will be Rs 41.939b.
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The Nation, 18 Jan, 2023