The National Electric Power Regulatory Authority (Nepra) has approved a Rs 1.96 per unit increase in Quarterly Tariff Adjustments (QTAs) for Distribution Companies (Discos) and K-Electric for the first quarter of FY 2024-25.
This adjustment aims to recover an additional Rs 1.18 billion, which will be reflected in electricity bills starting December 2024.
Key Details from the Decision
A public hearing on November 20, 2024, included participation from the Ministry of Energy, Central Power Purchasing Agency (CPPA-G), Discos, K-Electric, and members of the public.
During the session, it was explained that the ongoing fourth quarterly adjustment of Rs 1.74 per unit for FY 2024-25 will expire in November 2024, leading to a net increase of approximately 22 paisas per unit for consumers.
Public Concerns
Several participants raised concerns about the timing of the tariff hike:
- Aamir Sheikh proposed deferring the charges to January 2025 to mitigate the financial impact on consumers.
- Arif Bilwani questioned the significant drop in demand across all Discos and called for an investigation into load-shedding practices.
CPPA-G’s Additional Request
The CPPA-G sought an allowance of Rs 1.007 billion to cover legal fees tied to a debit note issued to Discos following a previous Authority decision regarding the Market Operator Fee (MOF) for FY 2024-25. Nepra, however, has traditionally excluded legal fee adjustments from quarterly tariff calculations.
Broader Context
This adjustment follows a pattern of fluctuating electricity costs. In recent months, Nepra:
- Approved a Rs 3 per unit hike for K-Electric to recover Rs 6.1 billion.
- Reduced tariffs by up to Rs 9.97 per unit for specific K-Electric consumers.
- Notified a Rs 2.75 per unit increase for general electricity consumers.
The adjustments highlight ongoing challenges in balancing energy sector finances while addressing public concerns about affordability and transparency.
