The country’s ten power Distribution Companies (Discos) have approached the National Electric Power Regulatory Authority (NEPRA) to further burden consumers with Rs 2.765 trillion for adjustment/indexation of different tariff components for the 2024-25 multi-year Tariff (MYT) components.
According to the petitions filed with the National Electric Power Regulatory Authority (NEPRA), Lahore Electric Supply Company (LESCO) has sought adjustment of Rs 852.047 billion, Faisalabad Electric Supply Company (FESCO) has sought Rs 501.481 billion, Islamabad Electric Supply Company (IESCO) Rs 400.484 billion, Quetta Electric Supply Company (QESCO) has submitted revenue requirement of Rs 236.945 billion, Gujranwala Electric Power Company (GEPCO), Rs 376.204 billion at tariff rate of Rs 3.31 per unit, Multan Electric Power Company (MEPCO), Rs 160.823 billion, Tribal Areas Electric Supply Company (TESCO), Rs 92.079 billion, Sukkur Electric Supply Company, Rs 35.796 billion and Peshawar Electric Supply Company (Pesco) Rs 67.244 billion. The main cost is the Power Purchase Price (PPP).
The requested adjustments are due to O&M costs, currency depreciation, Return on Rate base, Gross Margin, less; other income, net margin and Prior Year Adjustment. The estimates are based on the distribution business and power supply business. Some companies have also sought adjustments in pay and allowances for their employees.
Nepra is scheduled to conduct public hearings on Discos’ petitions in the first week of April 2024, i.e., April 2, 3, and 4, 2024, and has asked all interested/affected parties to submit written/ oral comments or objections as permissible under the law at the hearing.
Nepra wants to approve new disco tariffs in April or May so that the Power Division may seek approvals from the Law Ministry and, subsequently, the Federal Cabinet.
Power Division, sources said, has also pledged to the IMF that tariffs on Discos will be applicable from July 2024.
