Sep 27, 2019: The National Electric Power Regulatory Authority (NEPRA) on Friday announced its interim decision on a petition of ex-WAPDA power distribution companies (DISCOs) to recover around Rs 63 billion from power consumers on account of quarterly adjustments, distribution margin indexation, inflation and exchange rate.
The regulator allowed around Rs 33.5 billion under quarterly adjustment while Rs19.77 billion interim relief to the DISCOs. Its per unit impact would be around 53 paisa, the decision said.
On Wednesday, NEPRA conducted public hearing on the petitions of Power Division, Central Power Purchasing Agency (CPPA) and some distribution companies for their common request to pass impact of quarterly adjustments for the fiscal 2018-19.
In their petitions, the DISCOs had demanded Rs 33 quarterly adjustments while Islamabad, Lahore, and Faisalabad electric supply companies demanded an additional recovery of Rs 30 billion under their multi-year tariff (MYT) adjustment mechanism for fiscal year 2019-20.
The Authority determined tariffs of seven XWDISCOs for the FY 2016-17 & FY 2017-18 individually under the Single Year Tariff Regime (SYT), along with quarterly adjustments of Power Purchase Price (PPP) for the first two quarters of FY 2017-18. Subsequently, the Authority through its decisions in the matter of periodic adjustments allowed the impact of over/under recovery of allowed Distribution Margin (D.M) and variation in PPP for the remaining two quarters of the FY 2017-18 as Prior Year Adjustments (PYA).
For XWDISCOs under the MY'I' regime i.e. FESCO, LESCO and IESCO, the Tariff was initially determined by the Authority for a control period of five years starting from July 2015 till June 2020, however, since the said tariff was notified by the Federal Government effective March 22, 2018, therefore, the Authority re-assessed the Distribution Margin of these companies for the FY 2016-17 and FY 2017-18.
The components so determined pertaining to the FY 2017-18 were indexed as per the mechanism prescribed in the MYT determination, to be applicable from July 2018 and the indexed components for the FY 2018-19 are to be used for making future adjustments/ indexations during the five years tariff control period starting from July 2018 till June 2023, as per the mechanism prescribed in the MYT determination / redetermination of these companies.
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