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Baner Club > Blog > Business > Another hike in power tariffs is expected for inflation-hit masses
Business

Another hike in power tariffs is expected for inflation-hit masses

Another hike in power tariff expected for inflation-hit masses

Last updated: 2024/01/31 at 1:11 PM
Published January 31, 2024
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SAMBAD: The National Electric Power Regulatory Authority (Nepra) is predicted to raise power tariffs in the upcoming months, so it appears that the masses suffering from exorbitant electricity bills won’t be getting any relief anytime soon, The News reported on Wednesday.

The state-owned electricity distribution businesses, or “Discos,” have officially asked the Nepra for permission to bill customers for Rs81.5 billion.

The requested recovery relates to a number of modifications for October through December 2023, which is the second quarter of the fiscal year 2023–24. The majority of this recovery, or Rs75.1 billion, is made up of capacity charges that power consumers must pay to private power generators, accounting for 92.2% of the total.

The K-Electric will be subject to the same additional charges per unit as determined by the Nepra for Discos.

Based on the federal government’s policy guidelines for applying consistent quarterly adjustments, K-Electric’s customers will also be covered by this second quarterly tariff adjustment (QTA) for FY2023–2024, which Nepra will calculate.

On February 14, 2024, the power regulator has scheduled a public hearing about the petition. The discos had requested a tariff increase in their petition, citing various reasons such as capacity charges, transmission fees, the effect of additional units, market operation fees, the effect of transmission and distribution (T&D) losses on FCA, and other variable O&M charges for the quarter.

In the plea, Lahore Electric Supply Company (Lesco) sought a further adjustment of Rs. 15,105 billion, Islamabad Electric Company (Iesco) sought an additional adjustment of Rs. 6,921 billion, 

The following are the reported amounts: Rs2.663 billion for Gujranwala Electric Power Company (Gepco), Rs9.446 billion for Faisalabad Electric Supply Company (Fesco), Rs14.884 billion for Multan Electric Company (Mepco), Rs11.583 billion for Peshawar Electric Supply Company (Pesco), Rs3.524 billion for Hyderabad Electric Supply Company (Hesco), Rs10.983 billion for Quetta Electric Supply Company (Qesco), Rs2.879 billion for Sukkur Electric Power Company (Sepco), Rs2.879 billion for Sukkur Electric Power Company (Sepco), and Rs3.51 billion for Tribal Electric Supply Company (Tesco).

Discos have attempted to include Rs75.1 billion for capacity charges, Rs6.587 billion for use of system charge (UoSC) and market operator fee (MOF), Rs10.818 billion for T&D losses in monthly FCA, and a negative adjustment of Rs2.335 billion of incremental units from the total amount of Rs81.5 billion. Variable O&M costs are another unfavorable change.

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January 31, 2024 January 31, 2024
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