Power Firms
ISLAMABAD: Power distribution companies have submitted applications to the National Electric Power Regulatory Authority (Nepra) seeking approval to transfer relief of over Rs52 billion to consumers under the quarterly adjustment mechanism.
According to Nepra, the applications pertain to the second quarter adjustment of the current fiscal year and request a total reduction of Rs52.12 billion.
The breakdown of these adjustments includes a proposed Rs50.66 billion reduction in capacity charges and a Rs2.66 billion decrease in transmission and distribution losses. However, the power companies have also sought an increase of Rs2.69 billion under operations and maintenance costs.
The proposed adjustment will be applicable to all electricity consumers across the country, including those under K-Electric. If approved, it will be factored into electricity bills for the October-December 2024 period.
Nepra has scheduled a hearing on these applications for February 12, during which it will assess the justifications provided by the power companies before making a final decision.
While the total relief amount has been specified, Nepra sources indicate that it is too early to determine the exact reduction in the per-unit electricity tariff.
The final impact on consumer bills will be decided based on the outcome of the regulatory hearing and further deliberations on the cost components submitted by the distribution companies.
It is worth mentioning that a significant portion of this expected relief is attributed to the government’s decision to shut down five independent power producers (IPPs) with a combined capacity of 2,400 megawatts.
These power plants were decommissioned following negotiations aimed at reducing the overall capacity payments burden on the national grid.
If Nepra grants approval, this adjustment will provide much-needed relief to consumers at a time when electricity costs have been a major concern.
The decision is expected to play a key role in shaping future electricity tariff adjustments and the overall financial health of the power sector.
