Discos seek Nepra's approval to recover Rs8.7bn from power consumers

• Recovery related to various adjustments for 1st quarter of FY25.
• Majority of recovery amount's chunk of over Rs8bn are capacity charges.
• Nepra hold public hearing on petition on November 20, 2024.

ISLAMABAD: Power distribution companies have requested the National Electric Power Regulatory Authority (Nepra) to approve the recovery of Rs8.7 billion from power consumers across the country, The News reported on Thursday.

According to the publication, the recovery is related to the different adjustments for the first quarter of the fiscal year 2024-25, spanning July to September 2024, and majority of its chunk of more than Rs8 billion are capacity charges that power consumers are to pay to private power generators.

After Nepra determines the per unit additional charges for Discos, the same would also apply to K-Electric following the issuance of the federal government's police guidelines on the uniform applicability.

The power regulator has decided to hold a public hearing on the petition on 20 November, 2024. Discos in their petition had demanded an increase in tariff on account of capacity charges, transmission charges, market operation fees, use of system charges, impact of transmission and distribution (T&D) losses on Fuel Charges Adjustment (FCA) and other variable operation and maintenance charges for the quarter.

As per the petition, Islamabad Electric Company (Iesco) had sought additional adjustment of Rs1.746 billion, Gujranwala Electric Power Company (Gepco) Rs2.66 billion, Multan Electric Company (Mepco) Rs14.884 billion, Peshawar Electric Supply Company (Pesco) Rs4.02 billion, Quetta Electric Supply Company (Qesco) Rs2.155 billion and Sukkur Electric Power Company (Sepco) Rs539 million.

Whereas, Lahore Electric Supply Company (Lesco) will refund Rs672 million, Faisalabad Electric Supply Company (Fesco) Rs947 million, Hyderabad Electric Supply Company (Hesco) Rs870 million and Tribal Electric Supply Company (Tesco) Rs1.12 billion.

Of the total amount of Rs8.71 billion, Discos have sought to include Rs8.06 billion on account of capacity charges, Rs1.653 billion on account of use of system charge (UoSC) and market operator fee (MOF) and Rs1.25bn for variable O&M charges.

Discos’ inefficiencies, power losses and theft in systems would be recovered from loyal consumers in the form of these recoveries. The 18% GST on this amount will add up another burden of Rs1.566 billion on power consumers.