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Nepra reserves decision on tariff hike for Discos

Asad Iqbal by Asad Iqbal
March 31, 2021
2 min read
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Nepra reserves decision on tariff hike for Discos

Nepra Chairman Tauseef H. Farooqui said the fuel cost adjustment for February would be 63-65 paisa. — Dharti News/Files

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday booked its judgment on enhancing power tariff by 91 paisa per unit under quarterly adjustment and 66 paisa each on month-to-month gas cost modification for 10 distribution companies of ex-Wapda.

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Supervising two separate public hearings, Nepra Chairman Tauseef H. Farooqui claimed the fuel cost change for February would be 63-65 paisa as well as would certainly be identified after verification of data offered by the Central Power Acquiring Firm (CPPA) and would certainly be chargeable to customers in the payment month of April.

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In its very first petition, the Central Power Getting Company (CPPA) in behalf of all Discos had actually demanded about 66 paisa per unit increase therefore higher generation cost electricity consumed in February to produce regarding Rs4.7 billion in extra cash flows to power companies.

Separately, all the Discos have actually submitted separate applications for quarterly toll changes for the period July 2020 to December 2020 (2 quarters) with extra cumulative economic effect of Rs91bn that exercises to be concerning 91 paisa each boost in base toll.

This consists of Rs44.89 bn therefore very first quarter as well as Rs46.76 bn for 2nd quarter. The tariff adjustments under QTAs would become part of the tariff individually under a timetable to be set jointly by the regulator as well as the government.

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Under the toll mechanism, modifications in fuel price are passed on to consumers on regular monthly basis with automatic system while QTAs on account of variation in power acquisition price (PPP), ability charges, variable operation and upkeep prices, use of system charges and including influence of transmission and circulation losses are integrated in the base toll by the federal government.

Authorities said the quarterly adjustments might have to be kept pending for a couple of months offered the forthcoming impact of current tariff boosts. Probably, the main clarified, the government would like to replace the existing QTA with the July-December 2020 QTA in July.

Tags: NEPRA
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Asad Iqbal

Asad Iqbal

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