On Friday, the National Electric Power Regulatory Authority (NEPRA) ordered the power distribution firms to return Rs52.6 billion to Pakistan’s electricity customers as part of the quarterly tariff adjustments.
In two separate rulings regarding adjustments to fuel charges, the regulatory body instructed K-Electric and former WAPDA Distribution Companies (XWDiscos) to provide refunds of Rs3.64 per unit and Rs0.2883 per unit, respectively, to their customers. The Discos have requested approval from NEPRA to return Rs51.493 billion to consumers based on quarterly tariff revisions, largely because of a decrease of Rs47.124 billion in capacity payments.
After implementing several modifications, the authorities have declared a negative adjustment of Rs52.603 billion due to variations in capacity charges, operational and maintenance costs, increased revenue from incremental sales, usage fees, market operation charges, and impacts on transmission and distribution losses for the fiscal year’s third quarter ending March 2025. Regarding the Quarterly Tariff Adjustment (QTA), the regulatory body mandated a negative tariff adjustment of Rs1.5538 per unit (totaling Rs52.6 billion) for this same period. This ruling will advantage most customers, including those served by K-Electric, starting May until July 2025. Notably, during the preceding quarter—from October to December 2024—the regulators instructed all electricity distributors to refund Rs1.9 per unit (amounting to Rs56.38 billion) which was applied to billing cycles between April and June.
Concerning the KE FCA for February, NEPRA instructed K-Electric to provide a refund of Rs3.64 per unit to their customers through their May invoices. This temporary rate applies to all consumers except those under the lifeline category, domestic protection plan, electric vehicle charging points, and prepaid subscribers. The akhir figure will be adjusted after the multi-year tariff for fiscal years 2024-30 has been established.
In their petition submitted on behalf of XWDiscos, the CPPA-G requested a reduction of 0.0309 per unit, which would affect consumers by Rs250 million. Following some modifications, NEPRA decided in its third ruling that XWDiscos must reimburse Rs0.2883 per unit due to FCA for the March 2025 billing cycle in May bills, excluding lifeline, protected customers, electric vehicle charging stations, and prepaid subscribers.
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