NEPRA Increases Power Tariff For XWDISCOs

The National Electric Power Regulatory Authority (NEPRA) has approved another hike in the power tariff by Rs. 0.42 per unit for Ex-Wapda Distribution Companies (XWDISCOs) on account of the quarterly adjustment.

According to the details, the decision was taken during a public hearing on petitions filed by XWDISOCOs for power tariff increase on account of quarterly adjustment for third quarter (January to March 2022) of the current fiscal year.

The NEPRA added that the revised power tariff will be charged to the electricity consumers for three months. Furthermore, Chairman NEPRA, Tauseef Farooqi, said that DISCOs are unable to perform their only duty of selling electricity properly, adding that the regulator has not opened an ATM with unlimited cash flow.

Chairman NEPRA also deplored the performance of DISCOs saying that recoveries are only 85% while the rest is accumulating into circular debt. According to the data of the Central Power Purchasing Authority (CPPA), circular debt stood at Rs. 2467 billion 2022.

This implies that circular debt is equivalent to 3.8 percent of Pakistan’s GDP and represents 5.6 percent of Pakistan’s government debt. Moreover, if this circular debt continues to grow at the current pace, it is estimated to reach Rs. 4 trillion by 2025.

It is pertinent to mention that NEPRA has already approved a power tariff hike of Rs. 10.06 per unit in total as Fuel Charges Adjustment (FCA) for the month of April.

Read more: NEPRA Approves Hike in Power Tariff Across Pakistan.

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