Discos to Recover Rs 51.8b Additional from Power Consumers
Staff Report
The National Electric Power Regulatory Authority (NEPRA) is considering allowing power distribution companies (Discos) to recover Rs51.86 billion additional from power consumers on account of the third quarterly adjustment of FY24.
If approved, this adjustment will impose an extra burden of Rs1.45 per unit on consumers and is proposed to take effect in July, August, and September.
NEPRA officials have indicated that this rate hike would also impact K-Electric consumers. However, the final approval is pending pending a thorough review.
On Friday, NEPRA conducted a public hearing regarding the petition submitted by the Central Power Purchasing Agency (CPPA) on behalf of all distribution companies.
During the hearing, NEPRA officials disclosed that net metering within IESCO has reached 160 megawatts, contributing to a national total of 2,000 megawatts.
Concerns were raised about the potential decline in net metering rates and its impact on grid electricity purchases. NEPRA Chairman Waseem Mukhtar assured that these concerns would be addressed appropriately.
The performance of HESCO came under scrutiny, with NEPRA member Rafique Ahmed Shaikh criticizing it as the poorest among the companies.
The absence of a HESCO representative at the hearing prompted NEPRA to issue a show-cause notice.
“The situation in HESCO is shameful,” stated Shaikh, with the Chairman warning of potential extreme measures against HESCO.
The Power Division emphasized the urgency of implementing the quarterly adjustment, noting that the fourth-quarter adjustment would be submitted before July 15. Nepra Takes Notice of Loadshedding During Exams
As of May 9, Rs104 billion had been recovered from electricity defaulters, but the government still needs to recover Rs1.3 trillion, according to Power Division officials.
During the quarter (January-March 2024), significant declines in electricity demand were reported across various distribution companies.
In IESCO, industrial consumption decreased by 3%, and demand in the cement industry dropped by 18.2%, according to the IESCO CEO. LESCO saw an overall electricity demand fall by 7.2%, with industrial demand down 15% and domestic demand down 3%, reported the LESCO CFO.
PESCO’s demand decreased by 9.1%, with industrial demand falling 17.7% and agricultural sector demand dropping 15.5%, according to the PESCO CEO.
SEPCO reported a domestic sector demand decrease of 14.7%, with commercial sector demand falling by 20% and tube well electricity demand dropping by 16.6%. SEPCO also reported that out of 800,000 consumers, 300,000 are defaulters.
The Korangi Association expressed concerns over the high cost of electricity. Representative Muhammad Rehan warned that “under these conditions, the industry will shut down.”
