Nepra allows an increase in power tariff by 14.56 paisa per unit

November 27, 2019 (MLN): The National Electric Power Regulatory Authority (Nepra) on Tuesday has allowed an increase of 14.56 paisa per unit in power tariff for ex-Wapda Discos on account of power purchase price (PPP) adjustment for the Jul-Sept FY20.

That increase in electricity prices continued to transfer the burden of Rs. 14.78 billion to the power consumers.

On account of PPP adjustment, the distribution companies had filed their request for the first quarter July-Sept FY20. The government has asked to increase the tariff by 17 paisa per unit in order to generate Rs 17.7 billion in additional revenue for Discos.

A public hearing was conducted by Nepra on November 20, 2019, which was about the issue of price adjustment by transferring the burden of Rs 17.2 billion to consumers for the first quarter FY20. Moreover, Nepra reserved its judgement.

Chairman Nepra Tauseef H. Farooqi had presided over the hearing. The participants had questioned the increase in tariff on the excuse of various adjustments.

The authority, in order to work out the amount of quarterly adjustments of Disco, obtained the details of actual power purchase cost billed by Central Power Purchasing Agency (CPPA G) to Disco for the relevant period. The information provided by CPPA to Nepra was not exactly as per the format described by the authority.

In view thereof, for working out the impact of quarterly adjustment for all the distribution companies, the information provided by CPPA (G) in its own format has been relied upon. 

Accordingly, the amount of quarterly adjustments have been worked out for variation in capacity charges, variable O&M, use of system charges, market operator fee and FCA impact on T & D losses for the quarter Jul-Sept FY20.

Going forward, CPPA (G) is directed to submit the required information as per the Authority’s prescribed format not later than two weeks’ time and the amount allowed would be adjusted in subsequent determination, if any variation is found.

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