July 14, 2023
BRIEF ON DISCOs CONSUMER-END TARIFF FOR FY 2023-24
• NEPRA determines different consumer-end Tariff for each distribution company (XWDISCO), owing to their different revenue requirements and allowed different level of T&D losses.
• The determined tariffs are intimated to the Federal Government to file uniform tariff application.
• The uniform tariff so determined by NEPRA after incorporating the amount of subsidy/ surcharges as intimated by the GoP, is notified by the GOP to be charged from the consumers.
• MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO filed Adjustment/indexation request under Multi-year tariff regime for FY 2023-24.
• IESCO, LESCO & FESCO filed Multi-Year Tariff petitions for FY 2023-24 to FY 2027-28, and also requested for Interim Tariff for FY 2023-24.
• The Authority, has accordingly, determined the consumer-end tariff for FY 2023-24.
• The revised National Average tariff for the FY 2023-24 has been determined as Rs.29.78/kWh, which is Rs.4.96/kWh higher than the previously determined national average tariff of Rs. 24.82/kWh.
• The increase of Rs.4.96/kWh is mainly due to overall low sales growth, PKR devaluation, high inflation, exorbitant interest rates and addition of new capacities etc.
• Total Revenue requirement of XWDISCOs is projected as Rs.3,281 billion with projected sales of 110,165 GWh for the FY 2023-24.
• Any relief of decrease in tariff will be directly transferred to the consumers in future, in case of appreciation of PKR, decrease in inflation and interest rates etc.
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