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HomeکاروبارXWDiscos seek Nepra’s nod to transfer Rs55.46b additional burden to consumers

XWDiscos seek Nepra’s nod to transfer Rs55.46b additional burden to consumers

XWDiscos seek Nepra’s nod to transfer Rs55.46b additional burden to consumers

Extra burden of consumers of XWDiscos will reach Rs176 billion during last quarter of FY2023-24.

ISLAMABAD   –  The additional burden of the consumers of Ex-Wapda Discos (XWDiscos) will reach Rs176 billion during the last quarter of fiscal year 2023-24, on account of monthly fuel charges adjustments and quarterly adjustments, as the state-owned power distribution companies have sought the National Electric Power Regulatory Authority’s nod to transfer extra burden of Rs55.46 billion (including GST) to power consumers on account of 4th QTA.

XWDiscos have requested Nepra approval to recover Rs47 billion from consumers, pertaining to various adjustments for the fourth quarter of the last fiscal year 2023-24 (April to June 2024). The application of 18 percent GST on Rs47 billion will add another Rs8.46 billion to the burden of the XWDiscos’ consumers, taking it to Rs55.46 billion. This recovery has a major chunk of 48.7% or Rs22.868 billion as capacity charges from the power consumers to be paid to the private power generators.

Once the Nepra determines the per unit additional charges for XWDiscos, the same will apply to the K-Electric as well. It is worth noting that earlier NEPRA had allowed XWDiscos to recover Rs120.471 billion from the consumers on account of three FCAs for April, May and June 2024.

Earlier, NEPRA had allowed XWDiscos to recover an additional Rs3.332 per unit from the consumers on account of FCA for April 2024, having an additional impact of Rs33 billion (Rs28 billion FCA+5 billion GST). Similarly, for the month of May, NEPRA had allowed XWDiscos to recover an additional Rs3.33 per unit, on account of monthly FCA, which resulted in burdening the power consumers around Rs 48 billion (FCA +GST).

The recovery of Rs2.5627 per unit on account of monthly fuel charges adjustments for the month of June will burden the consumers with an additional Rs 39.471 billion, which includes Rs33.45 billion, in August bills, on account of monthly FCA and Rs 6.021 billion on account of imposition of 18 percent GST.

In light of the policy guidelines issued by the federal government for the application of uniform quarterly adjustments, this second quarterly tariff adjustment (QTA) for FY2023-24, to be determined by Nepra, shall also apply to the customers of K-Electric. The power regulator has decided to hold a public hearing on the petition on August 26, 2024. XWDiscos in their petition had demanded an increase in tariff on account of capacity charges, transmission charges, market operation fees, the impact of transmission and distribution (T&D) losses on FCA and other variable operation and maintenance charges for the quarter.

Of the total amount of Rs47 billion, Discos have sought to include R22.868 billion on account of capacity charges, Rs7.51 billion on account of use of system charge (UoSC) and market operator fee (MOF), Rs10.81 billion on account of T&D losses in monthly FCA, and another Rs4.01 billion adjustment is of variable O&M charges. XWDiscos’ inefficiencies, power losses, and theft in systems would be recovered from loyal consumers in the form of these recoveries. Multiple taxes, the consumers were paying on these additional charges, were another burden on the consumers. Only the 18 percent GST on this amount will add up to another burden of Rs8.46 billion on the power consumers.

As per the petition, Islamabad Electric Company (Iesco) had sought additional adjustment of Rs1.339 billion, Lahore Electric Supply Company (Lesco) Rs3.996 billion, Gujranwala Electric Power Company (Gepco) Rs7.682 billion, Faisalabad Electric Supply Company (Fesco) Rs4.7 billion, Multan Electric Company (Mepco) Rs7.91billion, Peshawar Electric Supply Company (Pesco) Rs536 million, Hyderabad Electric Supply Company (Hesco) Rs5.017 billion, Quetta Electric Supply Company (Qesco) Rs8.078 billion, Sukkur Electric Power Company (Sepco) Rs4.538 billion and Tribal Electric Supply Company (Tesco) Rs3.195 billion.

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