ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a quarterly increase in power tariff of Rs1.55 per unit.
Following the tariff revision, power distribution companies (DISCOs) will recover Rs39 billion from consumers.
In a decision issued on Thursday, the regulatory authority authorised an increase in power tariff for the second quarter of fiscal year 2021-22 to account for variations in capacity charges, variable operation and maintenance (O&M) costs, use of system charges, market operation fee, and fuel cost adjustment (FCA) impact of transmission and distribution losses.
The regulator “approved a positive amount of Rs39 billion on account of quarterly adjustment” for the ex-Wapda distribution companies in the second quarter of FY22, according to a statement.
Except for lifeline consumers and incremental industrial sales eligible for the Industrial Support Package, the quarterly adjustment has a uniform impact of around Rs1.5547 per kilowatt-hour (kWh).
Nepra stated that it had decided to implement the same with effect from July 1, 2022, and that it would be recovered within three months of notification.
To calculate the DISCOs’ instant quarterly adjustment, the regulator obtained information on the actual power purchase cost billed to the DISCOs by the Central Power Purchasing Agency-Guarantee (CPPA-G) for the relevant period.
CPPA-G provided data for the second quarter of FY22, which runs from October to December 2021.
According to the details, the cost recovered on incremental units above and beyond the fuel cost, i.e. Rs12.96 less the reference fuel cost for each month, had been adjusted from the quarterly adjustment calculated on the basis of net units.
Similarly, the prior year adjustment (PYA) and sales mix for the period would be calculated using net units, excluding units purchased for incremental sales, it added.
