A.    Background

This refers to PGECs (in trail, blue, italic and after double line):

(a) 98 of 8.6.24 about XWDISCOs 3nd Quarter Adjustment Oct to Dec FY 2023-24

(b) 70 of 17.2.24 about XWDISCOs 2nd Quarter Adjustment Oct to Dec FY 2023-24

B.   Updated Commentary

1.   Further to KQU 2988 dated 7.9.24 being an important matter, we would inform you about Decision of the Authority in the matter of requests filed by XWDISCOs for Periodic Adjustment in tariff for the 4th Quarter of FY 2023-24 (Attachment 124.1 total 10 Pages) with emphasis ours in bold & Underline for quick reading.

2.   The Decision is sent to the Federal Government for intimation and action, if any, by the

Federal Government under Proviso (ii) of Section 3 1(7) of NEPRA Act, before its notification by NEPRA pursuant to the said Proviso of Section 31(7) of NEPRA Act, 1997.

3   After deliberation on the matter in paragraphs 1 to 15 (with objections by Professionals, Commentators etc who raised various concerns - para 7 to 9 refers), The NEPRA Decision is in paragraphs 16 to 24 which are reproduced below verbatim but in Italics and important matters marked in bold for emphasis.

16.   In light of the above discussion, information submitted by CPPA-G and adjustment requests filed by XWDISCOs, the Authority has decided to restrict the amount of quarterly adjustment for the 4th Quarter of FY 2023-24, as requested by XWDISCOs on account of variation in Capacity charges, Variable O&M, Use of System Charges and Market Operator Fee. However, regarding FCA impact on T&D losses, the same has been worked out as per the Authority's approved monthly FCAs decisions for the relevant months.

17.   Based on the discussion made in the above paragraphs and after considering the aforementioned adjustments, the Authority has determined a positive adjustment of Rs. 43,230 million on account of variation in Capacity charges, Variable O&M, additional recovery on Incremental sales, Use of System Charges, Market Operator Fee and FCA impact on T&D losses for the 4th quarter of FY 2023-24.

18.   It is pertinent to mention here that as per earlier practice, and the fact that the adjustment is being made in the already notified uniform tariff, the Authority beside determination of DISCO

19.   wise rate of quarterly adjustment, also determines a uniform rate for the quarterly adjustments to be charged from the consumers.

20.   The Authority has decided to allow positive quarterly adjustments of Rs 43,230 million pertaining to the 4th quarter of the FY 2023-24, in a period of 03 months i.e. Sep. to Nov. 2024, at a uniform rate of Rs.1.7432/kWh, to be applicable to all consumer categories, except lifeline consumers and prepaid consumers, as mentioned in the SoT attached herewith as Annex-A (Attachment CS5115.2 to this PGEC).

21.   It is important to note that Federal Government issued Policy Guidelines to NEPRA, vide letter dated 22.08.2023, for uniform application of quarterly adjustments on XWDISCOs and K-Electric consumers. The policy guidelines state that NEPRA shall determine the same tariff rationalization for K-Electric consumers as determined for XWDISCOS consumers, with same application period. The Policy Guidelines are reproduced hereunder:

i.               In order to maintain uniform tariff across country, NEPRA shall determine application of quarterly tariff determinations (QTAs) of XWDISCOs on KE consumers by way of tariff rationalization. NEPRA shall determine the same tariff rationalization for K-Electric consumers as determined for XWDISCOs consumers, with same application period, keeping in view financial sustainability of the sector and uniform tariff policy of the Federal Government.

ii.              Subsidy or surcharge against the determined tariff for K-Electric consumers shall be assessed on an annual basis instead of monthly or quarterly basis.

iii.            Federal Government's motion with respect to recommendation of consumer end tariff for K- Electric Limited dated March 17, 2023 pursuant to the 1ª Quarterly adjustment of FY 2022- 23 determination for XWDISCOs, shall be considered accordingly.

22.   It is also important to mention here that in light of aforementioned policy guidelines, the Authority earlier allowed application of quarterly adjustment since 4th quarter of FY 2022-23, determined for XWDISCOs, on the consumers of K-Electric, with the same applicability period, as of XWDISCOS.

23.   In view of the above discussion, relevant provisions of NEPRA Act, NE Policy and Policy Guidelines issued by the Federal Government, the Authority has decided to allow the application of instant quarterly adjustments on the consumers of K-Electric as well, with the same applicability period. Accordingly, the instant quarterly adjustment of Rs.1.7432/kWh shall also be charged from the consumers of K-Electric except life line and prepaid consumers, to be recovered in a period of 03 months i.e. September to November 2024, as per the category wise rates mentioned in the SoT attached herewith as Annex-B.

24.   While effecting the Quarterly Adjustments, the concerned DISCOs shall keep in view and comply strictly with the orders of the courts notwithstanding this order.

25.   The instant decision along-with attached Annexures, is intimated to the Federal Government, prior to its notification in the official Gazette as per Section 31(7) of the NEPRA Act.

C.   Kasbati & Co Views

It is worthwhile to note that the increase due to Capacity Charges of Huge sum of Rs 21,253 million and Line Losses (including Free Electricity to several Govt Employees & Theft with Corruption & Birbery) of Hugh sum of Rs 11,232 millions (i.e. 75% of total increaseRs 43,354 million).

Hence, the above matters were Jamaat-e-Islami (JI) Dharna & its  Leader constant speeches. Based on Public support of JI, everyone will shortly reap the benefits. Otherwise, be ready to face Higher Electricity Bills by upto Rs 9.78 Per unit shortly (and Other QCs about KE). 

Having stated as above, some of the Good news as to JI & your Supports effects will be covered in upcoming PGEC, etc. ISA

At the movement, please  take action as below, in order to keep pressure on the Govt to stop NEPRA from issuing Higher Tariff Notification  

D.   Multiplication

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this PGEC for the Noble Cause to Impart Knowledge, so as to save Electricity usage by your Entity, Home, Masaajids, etc leading to less bills. All Professionals & Public may make issue as to why Capacity Charges, Line Losses (including free Electricity to Govt & Theft due to Corruption and Bribery) are being charged to Good Payers. Moreover, a huge counter effect of 4 Federal Sales Tax types.

E.   Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com.