ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Thursday agreed in principle to pass on the financial impact of Rs 36 billion to consumers of Discos for the second quarter (October-December) of the financial year 2021 -22 under the Quarterly Tariff Adjustment (QTA) mechanism.

The Authority, comprising President Tauseef H Farooqi, Vice President Rafique Ahmad Shaikh and KP member Anwar Maqsood Khan, conducted the public hearing.

Initially, Discos requested a positive adjustment of Rs 41 billion for the second quarter, but later almost all the companies revised their figures to Rs 36 billion. Revised figures for six Discos were presented at the public hearing while revised figures for four companies were not available.

According to data shared with NEPRA, Islamabad Electric Supply Company (IESCO) requested a positive adjustment of Rs 4.404 billion for the second quarter. Lahore Electric Supply Company (LESCO) Rs 11.599 billion, Gujranwala Electric Power Company (GEPCO) Rs 3.689 billion, Faisalabad Electric Supply Company (FESCO) Rs 5.356 billion, Peshawar Electric Supply Company (PESCO) Rs 1.735 billion and Tribal Electric Supply Company (TESCO ) ) Rs 1.237 billion.

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Multan Electric Power Company (MEPCO) requested a positive adjustment of Rs 6.523 billion, Hyderabad Electric Supply Company (HESCO) Rs 2.763 billion, Quetta Electric Supply Company (QESCO) Rs 223 million and Sukkur Electric Supply Company (SEPCO) a negative adjustment of Rs 808 million. However, these four Discos have submitted their revised figures.

At the hearing, none of the officials had electricity figures as indicative demand from the power stations during the quarter, and the amount of electricity received by the Discos compared to the reservation. These numbers were needed to determine the amount of electricity nightclubs were not getting or supplying and the impact of which is being passed on to consumers in the form of capacity charges.

The Chief Financial Officers (CFOs) of LESCO and HESCO were not fully prepared with hard numbers to answer the questions raised by the Authority.

A representative of the Central Power Purchasing Agency- Guaranteed (CPPA-G) said that Rs 22 billion is related to K-2 and Rs 16 billion to the high voltage direct current (HVDC) transmission line.

It has also been revealed that up to 70 billion rupees of Discos losses beyond the allowable losses are now part of circular debt.

Copyright Business Recorder, 2022