national electric power regulatory authority off islamic

National Electric Power Regulatory Authority

Off Islamic Republic of Pakistan

€W1 NEPRA Tower, Attaturk Avenue (East), G-511, Islamabad.

Ph: +92-51-9206500, Fax: +92-51-2600026 Registrar Web: www.nepra.org.pk, E-mail: registrar©nepra.org.pk

No. NEPRA/TRF-336/13637-13639 August 31, 2018

Subject: Decision of the Authority in the matter of Request filed by Islamabad Electric Supply Company Ltd. (IESCO) regarding Adjustment in the Tariff Components for the FY 2016-17 and FY 2017-18 under Multi Year Tariff Regime [Case # NEPRA/TRF-3361

Dear Sir,

Please find enclosed herewith the subject Decision of the Authority along with Annexure-I-A, II, III & IV (23 pages).

2. The Decision is being intimated to the Federal Government for the purpose of notification in the official gazette pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act,1997.

3. The Order Part along with Annexure-I-A, II, III & IV of the Authority's Decision are to be notified in the official Gazette.

Enclosure: As above

( Syed Safeer Hussain )

Secretary Ministry of Energy (Power Division) `A' Block, Pak Secretariat Islamabad

CC: 1. Secretary, Cabinet Division, Cabinet Secretariat, Islamabad. 2. Secretary, Ministry of Finance, 'Q' Block, Pak Secretariat, Islamabad.

Decision of the Authority in the matter of request filed by Islamabad Electric Supply Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY 2016- 17 and FY 2017-18 Under Multi-Year tariff regime

DECISION OF THE AUTHORITY IN THE MATTER OF REQUEST FILED BY ISLAMABAD ELECTRIC SUPPLY COMPANY LIMITED (IESCO) REGARDING ADJUSTMENT IN THE TARIFF COMPONENTS FOR THE FY 2016-17 AND FY 2017-18 UNDER MULTI YEAR

TARIFF REGIME

1. The Authority determined tariff of Islamabad Electric Supply Company Limited (IESCO) under Multi Year Tariff (MYT) regime, for a period of five years i.e. from FY 2015-16 to FY 2019-20, vide tariff determination # NEPRA/TRF-336/IESCO-2015/2689-2691 dated February 29, 2016. The same was intimated to the Federal Government for its notification in the official gazette. IESCO, being aggrieved from the aforesaid determination, filed a Motion for Leave for Review (MLR) which was accordingly disposed-of vide decision dated May 18, 2016. The MLR decision was also intimated to the Federal Government for its notification in the official gazette. Subsequently, a reconsideration request u/s 31(4) of the then applicable Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 was filed by the Federal Government, which was also decided by the Authority on July 01, 2016 and the decision was intimated to the Federal Government.

2. IESCO filed a writ petition in Islamabad High Court (IHC) Islamabad against the aforementioned decisions of the Authority. Pursuant to the directions of the Honorable IHC, vide judgment dated June 22, 2017, the tariff of IESCO was re-determined by the Authority on September 18, 2017 and was intimated to the Federal Government for notification in the official gazette.

3. The tariff so intimated to the Federal Government was not notified and a considerable period lapsed; as a result thereof certain substantial legitimate costs could not be passed on to the consumers. Therefore, the Authority in exercise of its suo moto powers, vide its decision dated October 23, 2017 allowed the impact of periodical adjustments on account of Power Purchase Price (PPP) including impact of T&D losses on FCA and Prior Year Adjustment (PYA) pertaining to the FY 2016-17 in the consumer end tariff of IESCO and the same was also intimated to the Federal Government for notification in the official gazette.

4. The Federal Government vide SRO.377 (I)/2018 dated March 22, 2018 notified the MYT of IESCO determined for the FY 2015-16 to 2019-20 along-with periodical adjustments on account of PPP pertaining to the FY 2016-17 with immediate effect. The said SRO also contains a mechanism for periodic adjustments on account of variation in some of the cost components.

5. In accordance with the above referred notified tariff, IESCO vide its letter dated March 15, 2018 has filed a request for period adjustments in its tariff components pertaining to the FY 2016-17 and FY 2017-18 under the Multi Year Tariff regime, includin variation in PPP for the period from July to December 2017, on account of following heads;

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i. PPP adjustment including T&D losses ii. Operation & Maintenance Cost iii. Depreciation Expenses iv. Return on Rate Base v. Other Income

vi. Prior Year Adjustment

6. IESCO in its request submitted that since the tariff determined for the FY 2015-16 could not be notified in time, therefore, the reference tariff components for the FY 2015-16 cannot be used for adjustment / indexation. Accordingly, IESCO requested the following adjustments;

Particualrs

Rs. in Million

PPP adjustment (including T&D Losses) (Jul-Dec 2017)

PYA Adjustment (Jul-Dec 2017)

Consumer Mix Variance

Net Distribution Margin FY 2016-17

Net Distribution Margin FY 2017-18

30

14,750

21,938

31,629

Total Adjustment

68,347

7. The MYT tariff determination of IESCO and its subsequent redetermination also prescribes, the Salaries & wages, Depreciation, RoRB and Other Income components to be actualized whereas remaining components of the Distribution Margin are subject to CPI-X indexation.

8. Although the proposed adjustments are formula based and as per already prescribed mechanism but the impact of any such adjustments has to be passed on to the consumers, therefore, the Authority, in order to provide an opportunity of hearing to all concerned and to meet the ends of natural justice, decided to conduct a hearing on the issue. The hearing was initially scheduled on July 31, 2018 at NEPRA Tower, Attaturk Avenue (East), G-5/1, Islamabad. Salient features and details of the proposed adjustments were published in newspapers on July 20, 2018 and also uploaded on NEPRA's Website for information of all concerned. The hearing scheduled on July 31, 2018 was however postponed and was rescheduled for August 15, 2018. Advertisement for rescheduling of the hearing was published in the newspapers on August 08 2018. On the date of hearing, the Petitioner was represented by Director Finance IESCO. The Petitioner during hearing of the instant request, also submitted that adjustment on account of PPP may be allowed for the entire FY 2017-18 as the same has already lapsed and variations on account of PPP (including impact of T&D losses on FCA) have not yet been recovered/ passed on to the consumers

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9. Written comments were received from APTMA vide letter dated August 13, 2018. During hearing, APTMA requested for grant of additional time to file further input. The Authority allowed a period of 10 days for filing of comments. Subsequently APTMA requested for further period of 15 days, however, no further comments were received from APTMA in case of IESCO. A brief of the comments submitted by APTMA vide letter dated August 13 is as under;

i. Purpose of the Multi-year tariff is that consumers, especially industrial consumers would know that the same tariff will remain in vogue for next five years, but increase in the MYT every year under the cover of O&M cost, Depreciation Expense, Return on Rate Base, Other Income, Distribution Margin, Prior Year Adjustments (PYA) and Power Purchase Price defeats the very spirit of determining consumer end Multi-Year Tariff.

ii. Delay in filing of tariff petitions to NEPRA, its determination and implementation results in Prior Year Adjustments. The law bars implementation of a notification from retrospective effect and past recovery of tax/surcharge/adjustment cannot be realized. APTMA members are corporate entities and close their account books with the closure of financial year. PYA cause flaws and complications in their account books of succeeding financial years. No Prior Year Adjustment is due for LESCO, FESCO & IESCO and hence may be declined

iii. NEPRA does not ensure economic dispatch priority of power plants, which is the major cause of Power Purchase Price adjustment. This must be ensured, so that consumers are least burdened on this score.

iv. DISCOs have failed to achieve the target of T&D losses set by NEPRA despite the fact that NEPRA allowed heavy investments in the Transmission and Distribution Systems. The recovery position has also not been satisfactory.

v. The tariff charged from B-3 & B-4 consumers is based on the total T&D losses of DISCOs. The same may be reviewed considering the fact that B-4 and B-3 consumers are connected at 132 kV system and 11 kV system respectively.

vi. The revision in the O&M cost may not be allowed because the consumer service has deteriorated.

vii. The industrial consumers especially, B-3 & B-4 are not provided with pictures of reading on the electricity bills and are not given the reading at the time of recording the reading. Excess charging of readings were proved but still refunds are not allowed, which reflects mismanagement on the part of DISCOs. cfr(

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viii. Distribution margin may not be enhanced being unjustified and will encourage more inefficiencies. The losses, recovery, interruptions & customer service are below par and unsatisfactory.

10. The Authority has considered the concerns raised on behalf of APTMA and is of the following views:-

i. Multiyear tariff is awarded to the Petitioner with the spirit that it would reduce the element of uncertainty in the consumer end tariff to a greater degree. However, there are certain costs which are considered to be beyond the control of the Petitioner e.g. PPP, delay in notification leading to PYA (which comprises of under/ over recovery of the different components of Tariff). The same adjustment mechanisms were also provided with the determinations in order to ensure the sustainability and viability of the Petitioner.

ii. While assessing the PYA, the Authority allows only legitimate cost for a particular period. The same may be a refund to the consumers (in case of over recovery) or an additional cost for the consumers (in case of under recovery), thus works both ways. Here it is pertinent to mention that as per system envouge consumers also pay their bills in arrears.

iii. On the issue of Merit Order, the commentator has given a general statement without any specific reference to any particular incidence.

iv. On the point of non-achievement of T&D losses target, it is pertinent to mention that the assessed regulatory targets do not become binding on the utility unless it is notified, with the exception to the assessed Distribution Margin and prior year adjustment as both represents fixed costs pertaining to a specific period. The Authority considers it would not be fair and just for the XWDISCOs to consider the assessed regulatory targets instead of notified regulatory targets for a period as DISCOs have not be allowed reasonable / required time for achievement of the assessed targets. Accordingly, the target of T&D losses and amount of investment allowed in the MYT shall be applicable for future period of five years.

v. While determining the tariff, the Authority do consider the voltage level at which a specific consumer is connected.

vi. On the issue of O&M cost, the Authority while making its assessment ensures that only prudently incurred costs are allowed. Disallowing any legitimate cost may result in operational difficulties for the Petitioner eventually creating further problems for the consumers. The DM determined for the FY 2015-16, therefore, needs to be trued up/ indexed subsequently, thus allowing the utility to recover its prudently incurred costs.

f 4

Description I I IESCO

FUEL COST

Actual Fuel Cost 61,769

Fuel Cost Recovered 79,651

FCA that should have been passed on (17,882)

FCA actually passed on 16,184

FCA still to be passed on (1,699)

VARIABLE O&M

Cost billed by CPPA-G 3,340

Variable O&M recovered 3,258

Under / (Over) Recovery 82

CAPACITY CHARGES


Capacity Charges recovered 25,638

Under / (Over) Recovery 17,014

USE OF SYSTEM CHARGES


UoSC recovered 2,582

Under / (Over) Recovery 849

Impact of Recovery on Annual PPP Rate (214)

Total Under / (Over) recovered PPP I I 16,032


11. The Authority in view of the foregoing discussion decided to adjust the different components of the Revenue requirement of the Petitioner including the Power Purchase Price, as per the mechanism/ criteria prescribed by the Authority. The details of adjustments is as under:-

12. Power Purchase Price

12.1 The Authority being cognizant of the fact that the period for which adjustment is being sought by the Petitioner i.e. July 2017 to June 2018, has already lapsed and variations on account of PPP (including impact of T&D losses on FCA) have not yet been recovered/ passed on to the consumers. The Authority believes that any such variations needs to be passed on to the consumers in order to ensure financial viability of the sector, which otherwise would result in huge prior period adjustments, thus, resulting in consumer end tariff distortions. Accordingly, the Authority, based on the available actual data for the period July 2017 to June 2018, as provided by CPPA-G, worked out the following PPP adjustments (including impact of T&D losses on FCA) for the FY 2017-18;

Million Rs.

4-1ER RE

<9,% 0

Lir NEPRA AUTHORlya 5


12.2 In view thereof, the aforementioned adjustment of Rs.16,032 million has been included in the revenue requirement of the Petitioner as Prior Year Adjustment.

13. Up-dation of PPP references

13.1 Although, there is an inbuilt mechanism for adjusting actual variation in sales against the estimated sales, yet in order to avoid unnecessary fluctuations in the consumer-end tariff, it is important to make realistic assessment of purchases and sales. It is also important to have a realistic assessment of the monthly references of fuel cost for making monthly fuel cost adjustment pursuant to Section 31(7) of the NEPRA Act.

13.2 The Authority being cognizant of the fact that the period for which adjustment is being sought i.e. July 2017 to June 2018, has already lapsed, therefore, for the purpose of determining revenue requirement of the Petitioner, actual generation cost has been considered for the FY 2017-18. Here it is important to mention that adjustment for variation in fuel cost up to June 2018 has already been provided through monthly FCA decisions and other adjustments up-to June 2018 have been included in the instant determination.

13.3 For the purpose of adjustments for variation in PPP in the FY 2018-19, the Authority decided to revise the PPP references in order to ensure minimum variation between the actual vis a vis projected costs. In view thereof, the Authority has carried out a detailed exercise for estimating station wise generation pertaining to the FY 2018-19. As per the analysis, an increase of around 22.77% has been projected in the generation for FY 2018-19, over the actual generation made during the FY 2016-17. Here it is pertinent to mention that the actual generation for the FY 2016-17 was 5.87% more than actual generation for the FY 2015-16. However, keeping in view the GoP initiatives to eliminate load shedding form the Country, whereby, number of generation projects have been commissioned, the Authority is of the view that projected growth of 22.77% in generation is achievable during the FY 2018-19. Accordingly, after incorporating all the expected upcoming additional generation, it is estimated that the overall system generation will be around 131,436 GWh, and after adjusting for the NTDC's permissible transmission losses, about 128,397 GWh is expected to be delivered to the distribution companies; the estimated share for the Petitioner from the pool, is accordingly assessed as 12,867 GWh. After incorporating the T&D losses target of 8.65 % for the FY 2017-18, the sales target in the instant case for the same period works out as 11,754 GWhs.

13.4 Similarly, to make a fair assessment of the Power Purchase Price (PPP), the Authority also carried out an in-house evaluation. As per the existing mechanism all the power generated from different sources is procured by the Central Power Purchasing Agency (CPPA-G) on behalf of DISCOs at the rates as per their Power Purchase Agreements (PPAs) and as per the Authority's determination. The overall power purchase cost constitutes a pool price which is transferred to the DISCOs according to a mechanism prescribed by the Authority and notified by the Federal.qA

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*,neprdi Decision of the Authority in the matter of request filed by Islamabad Electric Supply Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY 2016- 17 and FY 2017-18 Under Multi-Year tariff regime

Government in the Official Gazette. Accordingly, the Power Purchase Price has been projected, which in turn formulates the reference values for the monthly fuel adjustments & quarterly/ biannual PPP adjustment with respect to T&D losses, Capacity and Transmission Charges. Here it is pertinent to mention that while making the quarterly/ biannual adjustments of the PPP, the Authority may rationalize the Schedule of Tariff accordingly.

13.5 From the available sources i.e. Hydel, Gas, RLNG, RFO, Nuclear, Coal, Solar, Wind, Bagasse and Imports. The estimated/projected generation and cost of electricity is given in the following table:

Fuel Type Gen. Share Cost Share Rate

MkWh % Mln. Rs. % KS./1EW

b Hydel 43,314 32.95% 4,214 1% 0.10

Coal 18,589 14.14% 103,562 21% 5.57

HSD 161 0.12% 2,400 0% 14.90

F.O. 2,721 2.07% 40,853 8% 15.01

Gas 22,088 16.80% 93,647 19% 4.24

Nuclear 8,913 6.78% 8,950 2% 1.00

Mixed 271 0.21% 2,763 1% 10.18

Import from Iran 496 0.38% 5,237 1% 10.55

Wind Power 3,234 2.46% 641 0% 0.20

Bagasse 3,517 2.68% 23,465 5% 6.67

Solar 701 0.53% - 0% -

RLNG 27,430 20.87% 198,491 41% 7.24

Total

Energy Charges [Net of NTDC Losses]

Cap. Charge [Rs. /kWh]

UOSC/MoF [Rs. /kWh]

131,436

128,397

100% 484,224

484,224

664,374

41,282

100% 3.68

3.77

5.17

0.32

Total Cost Rs. /kWh 1,189,880 9.27

13.6 Here it is pertinent to mention that the aforementioned energy charge includes variable O&M charges, however, variable O&M charges are not made part of monthly fuel charges adjustment and are adjusted as part of quarterly / biannual adjustments. As per the above table, around 21% of total generation is expected from RLNG, with around 41% share in the overall energy cost. Similarly, Generation form indigenous gas is expected around 17% with a cost share of around 19%. Coal is expected to generate around 14.14% of total energy, however, its share in the overall energy cost is expected to be around 21%. Meaning thereby that variation in generationg

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mix and prices of RLNG/ Gas & Coal would have greater impact on the generation cost, thus, ultimately affecting the consumer-end tariff. Here it is pertinent to mention that with this increased generation from RLNG, Coal and Nuclear, the share of RFO in total generation and consequently in the overall cost has been limited to only 2% and 8% respectively.

13.7 Regarding projection of fuel prices, the Authority noted that RLNG prices in Pakistan are not only affected by the international market being linked with prices of crude but also by the exchange rate parity. Accordingly, keeping in view the prevailing prices of RLNG as notified by OGRA, crude oil prices projections and the rupee devaluation, RLNG prices have been projected as Rs.1,367/mmbtu. For indigenous gas, the existing price of Rs.500/mmbtu (including GIDC of Rs.100/mmbtu) as notified by OGRA have been considered.

13.8 Regarding price of coal, the Authority analyzed the projections made by Argus consulting, World Bank and IMF reports, whereby a downward trend in coal prices has been projected for future periods. However, owing to the devaluation of Pak rupee, the Authority considers coal price of Rs.13,884/MT, on delivered basis, as reasonable.

13.9 The actual prices of RFO during the FY 2015-16 remained at around 39,462 per metric ton [excluding Sales Tax and including freight] as against the Authority's projections of around Rs.47,981 [excluding Sales Tax and including freight] for the same period. Similarly for the FY 2017-18, till February 2018, the actual RFO prices remained at around Rs.46,431 per ton [excluding Sales Tax and including freight]. However, due to non-notification of the Authority's determined tariff for the FY 2015-16, the fuel references of RFO determined for the FY 2014-15 i.e. 65,769 per metric ton [excluding Sales Tax and including freight] remained applicable during the FY 2015-16, FY 2016-17 and FY 2017-18 (till March 2018) resulting in higher monthly fuel charges adjustments during this period.

13.10 The RFO prices in Pakistan are not only affected by the international market but also by the exchange rate parity. Based on the international market condition/ projections and keeping in view the increasing trend of RFO prices, it can be presumed that RFO prices would increase in future. Consequently, RFO prices have been assumed on an average of Rs. 64,892 per metric ton [excluding Sales Tax and including freight] after incorporating the possible determinants of RFO prices. The HSD prices are being assumed on an average of Rs. 68.23 per liter [excluding Sales Tax], keeping in view the increasing trend of HSD price and recent devaluation of Pak Rupee.

13.11 The generation cost is transferred to the DISCOs according to the Transfer Price Mechanism (TPM) as prescribed by the Authority. Energy transfer charge shall be calculated on the basis of units delivered after adjusting the target transmission losses of NTDCL. NTDCL shall, for the purpose of clarity intimate to all DISCOs, the generation part of the Transfer Charge during V)

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billing period by deducting from the Transfer Charge the Transmission Charge or Use of System Charges.

13.12 According to the above mechanism Rs.60,192 million and Rs.3,746 million is the share of the Petitioner on account of CpGenCap and USCF & Market Operator Fee respectively for the purpose of assessment of revenue requirement for the FY 2017-18. The overall fixed charges comprising of CpGenCap and USCF & Market Operator Fee in the instant case works out as Rs.63,938 million, which translate into Rs.2,322/kW/month based on projected average monthly MDI of the Petitioner i.e.2,294 MW or Rs.4.969/kWh on units purchased basis.

13.13 The annual PPP of the Petitioner in the instant case works out as Rs.112,466 million. With the projected purchase of 12,867 GWh for the same period, the average PPP of the Petitioner turns out to be as Rs.8.74/ kWh (Annex — IV), whereas, the national average determined PPP works out as Rs.9.27/kWh after accounting for the allowed level of NTDC losses. On the basis of allowed level of T&D losses of 8.65% for the Petitioner for the FY 2017-18, the adjusted PPP is assessed as Rs.9.57/kWh.

14. Distribution Margin

14.1 Regarding assessment of the distribution margin of the Petitioner for the FY 2016-17 and FY 2017-18, the Authority observed that the MYT of LESCO was determined for a control period of five years i.e. from FY 2015-16 to FY 2019-20. However, the said tariff has been notified by the Federal Government effective March 22, 2018, therefore, in case of the Petitioner, logically the MYT control period of five years should start from March 22, 2018 till March 21, 2023, but since the targets were determined for the period starting from the month of July, hence the five years control period would start from July 2018 till June 2023. Consequently the Authority has decided to assess the Distribution Margin of the Petitioner for the FY 2016-17 and FY 2017-18 and the components so determined pertaining to the FY 2017-18 have been indexed as per the mechanism prescribed in the MYT determination, to be applicable from July 2018. Further, the same updated reference components for the FY 2018-19 would be used for making future adjustments/ indexations during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner. This would ensure that the Petitioner recovers its assessed DM timely.

14.2 Similarly, the target of T&D losses and amount of investment allowed in the MYT shall be applicable for future period of five years starting from July, 2018.

15. Salaries, Wages & Other benefits

15.1 The Authority in its MYT re-determination of the Petitioner for the FY 2015-16 decided that

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" Similarly for the future periods, the Authority- has also decided to allow the impact of any increases in salaries & wages, as announced by GOP, being beyond IESCO's control in the tariff for the respective year, till the time, IESCO remains in the public sector......"

15.2 In view thereof and the fact that FY 2016-17 has already lapsed, the Authority has decided to consider the actual cost incurred by the Petitioner during the FY 2016-17 in this regard. The Authority observed that as per the Audited financial statements provided by the Petitioner for the FY 2016-17, its actual expenditure under Salaries, Wages and other benefits (excluding postretirement benefits) is around Rs.5,733 million. The same has been allowed to the Petitioner for the FY 2016-17.

15.3 Similarly for the FY 2017-18, the Petitioner's actual Salaries, Wages & other benefits (excluding post-retirement benefits, discussed below) as per its draft financial statements for the FY 2017-18 is around Rs.6,369 million, which are hereby allowed.

15.4 For the FY 2018-19, the Authority has assessed the amount of Salaries & wages as per its decision in the MYT determination, whereby increases announced by GoP for the FY 2018-19 has been applied on the amount determined for the FY 2017-18. The same works out as Rs.6,973 million. The same updated reference components for the FY 2018-19 would be used for working out future cost during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

16. Postretirement Benefits

16.1 Regarding postretirement benefits, the Authority, in the Petitioner's MYT determination allowed provision for the post-retirement benefits, based on the Petitioner's last three years average provision as per its financial statements for the FY 2012-13, FY 2013-14 & FY 2014-15. The Petitioner was accordingly allowed an amount of Rs.2,894 million for the FY 2015-16 including the impact of the employees retired before unbundling of WAPDA, subject to the condition that it would deposit the whole amount into separate fund. It was also decided that if the Petitioner fails to transfer the whole amount of post-retirement benefits into the Fund, the Authority would adjust the deficit payments in the next year's provision and from thereon, only actual amounts paid and amount transferred into the fund would be allowed. In case of complete failure to transfer any amount into the fund, the Authority would only allow actual payments, rather than provision.

16.2 However, since the MYT determined for FY 2015-16 to FY 2019-20 did not remain applicable during the FY 2016-17 and most part of the FY 2017-18, therefore, the Authority, in order to ensure that the Petitioner's references for future adjustment/ indexation during the tariff control period are appropriate, has decided to allow the Petitioner, provision for postretirement benefits for the FY 2016-17 and FY 2017-18 as per its financial statements. Accordingly, for they)

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FY 2016-17, the Petitioner is allowed an amount of Rs.3,532 million and for the FY 2017-18, an amount of Rs.4,444 million under the head postretirement benefits including the impact of the employees retired before unbundling of WAPDA, subject to the condition that it would deposit the whole amount into separate fund, net off actual payments made during the respective years. It is also decided that if the Petitioner fails to transfer the allowed amount of post-retirement benefits into the Fund, the Authority would adjust the deficit payments in the next year's provision and from thereon, only actual amounts paid and amount transferred into the fund would be allowed. In case of complete failure to transfer any amount into the fund, the Authority would only allow actual payments, rather than provision. Here it is pertinent to mention that even after making actual payment of its pension obligations, the Petitioner with the allowed level of provision for postretirement benefits, would be able to deposit a minimum accumulated amount of more than Rs.5.5 billion for the three years period i.e. FY 2015-16, FY 2016-17 and FY 2017-18 in the Fund. The net amount to be deposited in the fund pertaining to the FY 2015-16, FY 2016-17 and FY 2017-18 has been included as part of PYA for the FY 2017-18.

16.3 For the FY 2018-19, the Authority has maintained its earlier assessment of Rs.4,444 million as Audited Financial statements for the FY 2017-18 are not available. The Petitioner would be recovering this additional amount of Rs.4,444 billion during the FY 2018-19, and the same shall be deposited by the Petitioner in the Fund net of actual payments. This amount would be in addition to the aforementioned amount of Rs.5.5 billion. The same updated reference components for the FY 2018-19 would be used for working out future cost during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

17. Depreciation

17.1 The Authority in its MYT determination of the Petitioner for the FY 2015-16 decided that;

"Considering the fact that Depreciation expense for the FY 2015-16 & onwards has been allowed based on estimated level of investments and in case the actual investments carried out turns out to be different from the estimated level, i.e. in case the Petitioner ends up in making higher investments than the allowed, the benefit of the incremental benefit must be passed on to the Petitioner and vice versa. In view thereof, the Authority has decided to true up the benefit of incremental investments and vice versa each year through the Prior Year Adjustment mechanism, which addresses the concerns of the Petitioner for calculation of depreciation each year based on actual CAPEX"

17.2 In view of the above and the fact that FY 2016-17 has already lapsed, the Authority has decided to consider the actual cost incurred by the Petitioner during the FY 2016-17 in this regard. The Authority observed that as per the Audited financial accounts provided by the Petitioner forT

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Decision of the Authority in the matter of request filed by Islamabad Electric Supply Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY2016-

ro

17 and FY 2017-18 Under Multi-Year tariff regime

the FY 2016-17, its actual expenditure under depreciation is around Rs.2,234 million. The same is hereby allowed. After carefully examining the relevant details and information pertaining to the deferred credit and amortization as per the accounts for the FY 2016-17, the Authority has assessed amortization of deferred credit to the tune of Rs.1,227 million for the FY 2016-17, thus, consumers would bear net depreciation of Rs.1,007 million.

17.3 Similarly for the FY 2017-18, the Petitioner's actual depreciation cost as per its draft financial statements for the FY 2017-18 is around Rs.2,467 million. The same is hereby allowed. After carefully examining the relevant details and information pertaining to the deferred credit and amortization for the FY 2017-18, the Authority has assessed amortization of deferred credit to the tune of Rs.1,318 million for the FY 2017-18. After adjusting this impact from the assessed depreciation, the consumers would bear net depreciation of Rs.1,149 million.

17.4 For assessing the depreciation pertaining to the FY 2018-19, the Authority has considered the investment of Rs.11,918 million allowed to the Petitioner for the first year of MYT control period, the Petitioner's previous capitalization trend and rates of depreciation as per the Company policy. Accordingly, an amount of Rs.2,617 million has been assessed. The same updated reference components for the FY 2018-19 would be used for working out future cost during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

18. RORB

18.1 The Authority in its MYT determination of the Petitioner for the FY 2015-16 decided that;

"Considering the fact that RAB for the FY 2015-16 & onwards has been allowed based on estimated level of investments and in case the actual investments carried out turn out to be different from the estimated level, i.e. the Petitioner ends up in making higher investments than the allowed, the benefit of the incremental benefit must be passed on to the Petitioner and vice versa. In view thereof, the Authority has decided to true up the benefit of incremental investments and vice versa each year through the Prior Year Adjustment mechanism, which addresses the concerns of the Petitioner for adjustment at the end of every year in RAB for variance between actual and budgeted CAPEX and the one time opener regarding re-assessment of Asset Base after privatization."

18.2 In view thereof and the fact that FY 2016-17 has already lapsed, the Authority considered the actual investment made by the Petitioner during the FY 2016-17, which as per its audited accounts is Rs.5,313 million, to work out its RORB. Similarly for the FY 2017-18, the Petitioner's actual investment as per its draft financial statements for the FY 2017-18 i.e. Rs.8,135 million, has been considered. The Authority in consistency with its decision in tlIt,

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matter of other XWDISCOs has decided to use the same WACC i.e. 11.83% for the FY 2016- 17 and FY 2017-18. Accordingly, based on the WACC of 11.83%, an RoRB of Rs.2,432 million and Rs.2,471 million has been worked out for the Petitioner for the FY 2016-17 and FY 2017- 18 respectively; the same is hereby allowed to the Petitioner.

18.3 For the FY 2018-19, the Authority while calculating the RoRB has accounted for the investment of Rs.11,918 million allowed to the Petitioner for the first year of MYT control period. The Authority has used the same WACC of 11.83% as allowed for the FY 2017-18 and accordingly an amount of Rs.3,223 million has been assessed as RoRB. The same updated reference components for the FY 2018-19 would be used for working out future RoRB during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

19. Repair & maintenance, Transportation, Travelling and Misc. Other Expenses

19.1 As per the mechanism provided in the Petitioner's MYT determination of FY 2015-16, the O&M part of the Distribution Margin shall be indexed with CPI subject to adjustment for efficiency gains (X factor). However, since the MYT 2015-16 did not remain applicable during the FY 2016-17 and most part of the FY 2017-18, therefore, the Authority, in order to ensure that the Petitioner's references for future adjustment/ indexation during the tariff control period are appropriate, has assessed the Petitioner's O&M cost i.e. Repair & maintenance, Transportation, Travelling and Misc. Other Expenses for the FY 2016-17 and FY 2017-18, after considering the Petitioner's actual expenses during these periods, its past trends and comparison with other XWDISCOs. Accordingly, the following costs are hereby allowed to the Petitioner for the FY 2016-17 and FY 2017-18 under the head Repair & Maintenance, Transportation, Travelling and Misc. Other Expenses;

Million Rs.

Description FY 2016-17 FY 2017-18

Repair & Maintenance 802 962

Travelling 273 287

Transportation 284 312 Other Expenses 679 649

Total 2,039 2,210

19.2 The amount of O&M costs assessed for the FY 2017-18 has been indexed based on change in CPI for the month of May 2018 i.e. 4.2%, which works out as Rs.2,303 million. The same updated reference cost for the FY 2018-19 would be used for working out future costs during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

13


20. Other Income

20.1 As per the mechanism provided in the Petitioner's MYT determination of FY 2015-16, the Other Income is to be adjusted annually. In view thereof and the fact that FY 2016-17 has already lapsed, the Authority considered the actual Other Income of the Petitioner as per its audited accounts for the FY 2016-17, which is Rs.1,813 million. The same is hereby allowed. Similarly for the FY 2017-18, the Other income of the Petitioner as per the draft financial statements is Rs. 2,190 million, which is also allowed. The references established for the FY 2017-18 shall be considered as the reference/base for working out other income during the tariff control period as per the mechanism prescribed in the MYT determination.

20.2 The references established for the FY 2017-18 shall be considered as the reference/base cost for working out the future distribution margin during the tariff control period as per the mechanism prescribed in the MYT determination.

20.3 Regarding assessment of Other Income for the FY 2018-19, the Authority has decided to maintain its earlier assessment of Rs.2,190 million as Audited Financial statements for FY 2017-18 are not available. The same updated reference for the FY 2018-19 would be used for working out other income during the tariff control period as per the mechanism prescribed in the MYT determination / redetermination of the Petitioner.

21. PRIOR YEAR ADJUSTMENT

21.1 The Authority through Suo Moto proceedings, vide its decision dated October 23, 2017 while allowing the impact of periodical adjustments on account of Power Purchase Price (PPP) including impact of T&D losses on FCA, also allowed the impact of Prior Year Adjustment (PYA) pertaining to the FY 2016-17 in the consumer end tariff of the Petitioner. The Authority although determined a positive component of PYA, however, from July to March 21, 2018, the tariff determined for the FY 2014-15 remained notified, which included a negative PYA component. The Petitioner, thus, instead of recovering PYA from the consumers, passed on extra amount to the consumers. The Authority has adjusted the impact of the same in the instant decision.

21.2 Considering the fact that the FY 2016-17 and FY 2017-18 has already lapsed, therefore, the Authority has incorporated the impact of difference in the Distribution margin determined for the FY 2016-17 and FY 2017-18 and the distribution margin recovered by the Petitioner during these periods, in the assessed revenue requirement in the instant decision as part of Prior Year Adjustment (PYA). Further, the impact of sales mix variance and other income for the FY 2016-17 has also been incorporated in the instant PYA. However, the impact of Sales mix variance and difference in the Other Income for the FY 2017-18 shall be adjusted in the future adjustments, once the Audited financial statements of the Petitioner for the FY 2017-18 are available

14

Decision of the Authority in the matter of request filed by Islamabad Electric Supply

4. 118Wa Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY 2016- 17 and FY2017-18 Under Multi-Year tariff regime

21.3 Here it is pertinent to mention that CPPA-G vide its letter dated March 20, 2018 revised the PPP cost billed to the Petitioner during the FY 2016-17, whereby, a reduction of around Rs.2,054 million has been reported by CPPA-G to the extent of cost charged to the Petitioner. The same has also been adjusted in the instant decision.

21.4 The Authority in accordance with its earlier decision in the matter, as explained at para 13.21 to 13.22 of its redetermination, dated September 18, 2017, in the matter of GoP's reconsideration request of IESCO, calculated the impact of negative FCA pertaining to the FY 2017-18 in the matter of lifeline consumers, domestic consumers (consuming up-to 300 units) and Agriculture Consumers which has been retained by the Petitioner. The Authority also considered the relevant clauses of the S.R.O. 189 (1)12015 dated March 05, 2015 issued by GoP and the amount of subsidy claims filed by the Petitioner for the FY 2017-18.

21.5 After considering all the aforementioned factors, the Authority has decided that an amount of Rs.6,057 million pertaining to FCA in the matter of lifeline consumers, domestic consumers (consuming up-to 300 units) and Agriculture Consumers for the FY 2017-18, calculated on the basis of mix allowed in the tariff that remained notified during this period, lying with the Petitioner, must be adjusted in the instant proceedings as a part of PYA. Here it is pertinent to mention that the above figures have been worked on the basis of information provided by IESCO.

21.6 Further, for the FY 2015-16, the Authority while determining the Revenue Requirement of the Petitioner, did not include the amount of LPS while assessing the other income, in line with its earlier decision in this regard. The Authority noted that CPPA-G has still not raised any invoice to the Petitioner on account of late payment charges pertaining to the FY 2015-16, therefore, the amount of LPS allowed in the FY 2015-16 and also for the FY 2016-17 is still available with the Petitioner. However, same shall be adjusted upon receipt of late payment invoice from CPPA-G to the Petitioner.

Consequently, the Authority has assessed the following PYA of the Petitioner for the FY 2017-18;

Description Rs. in Mln

Under / (Over) recovered PPP FY 2017-18 (as calculated above) 16,032 /

Under / (Over) recovered PYA FY2017-18 12,744

Under / (Over) recovered DM FY 2016-17 & FY2017-18 (334)

Downward revision in PPP by CPPA-G for the FY 2016-17 (2,054)

Sales Mix FY 2016-17 (1,855)

Adjustment of excess FCA retained FY 2017-18 (6,057)

TOTAL PYA 18,476

15

Decision of the Authority in the matter of request filed by Islamabad Electric Supply OB

Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY 2016- 17 and FY 2017-18 Under Multi-Year tariff regime

22. REVENUE REQUIREMENT

22.1 Based on the assessments made in the preceding paragraphs and the fact that PPP references have been revised by the Authority, the Revenue Requirement of the Petitioner has been revised as under;

1. Power Purchase Price

Rs. 112,466 Million

CpGenE Rs.48,528 Million

CpGenCap Rs.60,192 Million

USCF & Market Fee Rs. 3,746 Million

2. Distribution Margin (Net) Rs.17,369 Million

O&M Cost Rs.13,720 Million

Depreciation Rs. 2,617 Million

RORB Rs. 3,223 Million

Gross DM Rs. 19,560 Million

Less: Other Income Rs. 2,190 Million

3. Prior Year Adjustment

4. Total Assessed Revenue Requirement

23. ORDER

Rs. 18,476 Million

Rs.148,311 Million

I. Based on the above assessments, the periodic adjustments in the multiyear tariff notified vide

SRO NO.377(I)/2018 dated March 22, 2018 are being made to the following effect:-

TARIFF COMPONENT Amount

(Rs. in Mln.) ADJUSTMENTS/ INDEXATION/

TIMELINES POWER PURCHASE PRICE

Fuel Cost 45,102

As prescribed in the MYT determination notified vide SRO.377(I)/2018 dated March 22, 2018.

Variable O&M 3,426

Capacity Charges 60,192

UoSc & MoF 3,746

T&D Losses 8.65%

NET DISTRIBUTION MARGIN 17,369 O&M Cost

Salaries, wages & other benefits 6,973

a.)

16


Post-Retirement benefits 4,444

Other operating expanses 2,303

Depreciation 2,617

Return on Rate Base 3,223

Other Income (2,190) Prior Year Adjustment 18,476

KIBOR Spread 2.75%

KIBOR (In case of foreign financing the Authority may allow the adjustment of LIBOR)

7.01%

II. The references established for the FY 2018-19 shall be considered as the reference/base cost for working out the future Distribution Margin during the tariff control period as per the mechanism prescribed in the MYT determination.

III. Accordingly, the Annex-II-A (Quarterly/ Biannual adjustment mechanism), Annex-III (Estimated Sales Revenue), Annex-IV (PPP) and Schedule of Electricity Tariff attached with the notification issued vide SRO.377(I)/2018 dated March 22, 2018 shall be replaced with the Annex-I-A (Quarterly/ Biannual adjustment mechanism), Annex-II (Estimated Sales Revenue), Annex-III (Schedule of Electricity Tariff) and Annex-VI (PPP) respectively attached with this decision. All other Annexures attached with the aforementioned SRO shall remain intact.

IV. The SoT attached with the instant decision of the Authority, includes column of PYA 2016 and PYA 2107, which are already notified vide SRO.377/(I)/2018 dated March 22, 2018 and would continue to be notified till March 21, 2019. The aforementioned columns have been reproduced for the purpose of clarity only. If the competent Authority decides to re-notify the aforementioned columns with the instant SoT, the aforementioned columns shall remain notify till March 21, 2019 only and would cease to exist thereafter.

V. Tariff under Colum A and F shall remain applicable till March 21, 2019 only and thereafter only Column A, B and C shall remain applicable. Column C shall also cease to exist after one year from the date of notification of this decision and thereafter only Column A and B shall remain applicable till the same is superseded by next notification.

VI. All other points mentioned in the order part notified vide SRO.377(I)/2018 dated March 22, not reproduced here shall remain the same.

VII. The Order part, Annex-I-A, II, III and IV annexed with this decision are intimated to the Federal Government for notification in the official gazette under Section 31(7) of the NEPRA Act.

17

Member ?___IC) lah Chattha

Decision of the Authority in the matter of request filed by Islamabad Electric Supply Company Limited (IESCO) regarding adjustment in the Tariff Components for the FY 2016-17 and FY 2017-18 Under Multi-Year tariff regime

AUTHORITY

s

Rehmatullah Vice Chairman

Brig (R) Tariq Saddozai Chairman

19

Annex-I-A

QUARTERLY/BIANNUAL ADJUSTMENT MECHANISM

Quarterly/ Biannual adjustment shall be the Actual variation in Power Purchase Price (PPP),

excluding Fuel Cost Component, against the reference Power Purchase Price component and

the impact of T&D losses on FCA, for the corresponding months and shall be determined

according to the following formula;

Quarterly/Biannual PPP (Ad, )= PPP(Aet) (excluding FCC)-PPP(Reo (excluding FCC)

(1-T&D Loss %) X(1— Life line Consumption %)

Where;

PPP(Act) is the actual cost in Rs./kWh, excluding FCC, invoiced by CPPA-G to XWDISCOs, adjusted for any cost disallowed by the Authority.

PPP(Ret) is the reference cost in Rs./kWh as per the Annex-IV of the XWDISCOs determination that remained notified during the period.

T&D Loss % is percentage of T&D losses that remained notified during the period.

Quarterly/Biannual impact of T&D losses on FCA (Ad) )

FCA (Allowed)

(1-T&D Loss %) X (1-Life line Consumption %) - FCA (Allowed)

Where;

FCA (allowed) is the FCA allowed by the Authority for the respective months of the concerned period.

T&D Loss % is percentage of T&D losses that remained notified during the period.

Annex-II

Islamabad Electric Supply Company Limited(IESCO) Estimated Sales Revenue on the Basis of New Tariff

Description Sales Revnue Base Tariff PYA 2018 PYA 2017 PYA 2016 Total Tariff

C3Wh % Mix Fixed Charge Variable

Chug* Total Fixed Charge'

Variable Charge

Amount I Variable Charge

Amount 1 Variable Charge

Amount 1 Variable Charge

Fixed Charge

Variable Charge

MM. Rs. RsJinVi M Rs/ kWh MIA Rs. RaJ kWh Min Rs. RsJYWh MIn. Rs. RsJ kWh 'UAW ke Rs./ kWh

Residential

Up to 50 Units For peek load requirement less than 5 kW

111 0,95% 444 444 4.00 - - - - - - 401

01-100 Units 1314 11.18% 10,909 10,909 8.30 2,077 1.58 1,827 1.71 (598) (0.56) 11.0

101-200 Units 1320 11.23% 15,442 15,442 11.70 2.085 1.58 937 1.71 (307) (0.58) 14,4:

201-300 Units 1074 9,14% - 14,237 14,237 13.25 1.698 1.58 1,206 1,73 (390) (0.56) 18.01

301-7000nits 558 4.73% - 8,084 8,084 14.55 883 1.59 803 1.74 (194) (0.58) 17.3:

Above 700 Units 117 1,00% 1,889 1,889 16.10 187 1.59 184 1,77 (49) (0.53) 186;

For peak load requirement exceeding 5 kW) Time of Use (TOU) - Peak 155 1.31% 2,403 2,403 15.55 246 1.59 200 1.78 (63) (0.58) 1631

Time of Use (TOU) - Off-Peak 898 5.82% 5,874 5,874 8.15 1,107 1.59 931 1,85 (282) (0.56) 11.0

Temporary Supply 2 0.02% 34 34 15.85 3 1.59 1 1.78 (0) (0.56) 18.61

Total Residential

5,348

45.48%

59,116

59,118

8,286

5,869

11,884

Commercial - A2

For peak load requirement less than 5 kW For peak load requirement exceeding 5 kW

362 3.08% - 5.298 5,298 14.65 575 1.59 493 1,73 (180) (0.58) 17.4'

Regular 10 0,09% 19 121 141 400 11.65 17 1.59 17 1.73 (6) (0.56) 400 14.4'

Time of Use (TOU) - Peak 181 1.37% - 2,498 2,496 15.55 255 1.59 191 1.78 (60) (am) 18.31

Time of Use (TOU) - Off-Peak 717 8.10% 1,677 5,844 7,521 400 8.15 1,140 1.59 879 1.88 (282) (0.58) 400 11.01

Temporary Supply 20 0.17% 299 299 1465 32 1.59 21 1.73 (7) (0.56) 174'

Total Commercial

1,270

10.81%

1,696

14,059

15,756

2,019

1,601

14941

General Services-A3

353 3.00%

4,743 4,743

13.45

581

1.59 443 1.78 (139)1

10.5611 Industrial

81 B1 Peak 81 Off Peak

5 10

85

0.04% 0.09% 0.55%

80

158 528

so 158 528

11.85

15.55 8.15

8

16 103

1.59

1.59 1.59

6 15 93

1.78 1.78 1.98

oe~

o~~~:~~H

(0.56) (0.56) (0.56)

'14.41 18.31 11.11

B2 6 0.05% 7 64 71 400 11.15 9 1.59 11 1.76 (0.56) 400 13.91

82- TOU (Peak) 83 0.53% - 977 977 1655 100 1.59 85 1.78 (0.56) 1131

82 - TOU (Off-peek) 489 4.16% 1,209 3,884 5,093 400 7.95 777 1.59 893 1.98 (0.56) 400 10.91

83- TOU (Peak) 46 0,39% 718 718 1555 73 1,58 50 1.78 (0.56) 18.31

B3- TOU (0ff-peak) 466 3.96% 576 3,609 4,185 380 7.75 740 1,59 741 1,98 (0.5e) 380 10,71

B4- TOU (Peak) 107 0.91% 1,859 1,659 15,55 170 1.59 148 1.78 (0.58) 18.31

54 - IOU (00-peek) 807 6.87% 887 8,177 7,083 360 7.85 1,284 1.59 1,173 1.88 (0.58) 360 la 51

Temporary Supply 0 0.00% 0 0 11.85 0 1.59 0 1.78 (0.58) 14.41

Total Industrial

2,083

17.55%

2,879

17,834

20,513

3,280

3,017

(8811

Single Point Supply for further distribution

C1(e) Supply at 400 Volts-less than 5 kW 0 0.00% - 0 0 12.15 0 1.59 0 1.78" (0) (0.56) 14.91

Cl(b) Supply at 400 Volts-exceeding 5 kW 2 0.01% 2 19 21 400 11.65 3 1.59

7

1.78 (2) (0.58) 400 14.41

Time of Use (TOU) - Peak 15 0.13% - 230 230 15.55 24 1.59 22 1.78 ( 7) (0.58) 18.31

Time of Use (TOU) - Off-Peak 68 057% 94 542 835 400 8.15 106 1.59 117 1.85 (35) (0.58) 400 11.0:

C2 Supply at 11 kV 90 0.78% 106 1,026 1,132 380 11.45 143 1.59 145 1.78 (46) 1058) 380 14.21

Time of Use (TOU) - Peak 90 0.77% - 1,406 1,405 15.55 144 1.59 110 1.78 (35) (0.56) 1031

Time of Use (TOU) - Off-Peak 452 3.84% 898 3,501 4,198 380 7.75 718 1.59 575 1.85 (174) (0.58) 380 we:

C3 Supply above 11 kV 0 0.00% - - • 380 11.35 1.59 - 1.78 (0.56) 360 14.11

Time of Use (TOO) - Peak 78 0.65% - 1,184 1,184 15.55 121 1.59 76 1.78 (24) (0.56) 18.31

Time of Use (TOU) - Off-Peak 314 2.67% 399 2,399 2,798 360 7.85 499 1.59 391 1.83 (120) (ass) 380 10.5

Total Single Point Supply

1,104

9.39%

1,299

10,305

11,604

1,756

1,443

Agricultural Tube-wells - Tariff D

Scarp Time of Use (TOU) - Peak

2 11

0.02% 0.10%

- -

22 177

22 177

12.55 15.55

3 18

1.59 1.59

6 20

1.78 1.78

(2)

16)

(0.56) (0.56)

' 15:31 18.31

Time of Use (TOU) - Off-Peak 65 0.56% 58 506 584 200 7.75 104 1,59 115 1.90 (34) (0.58) 200 1064

Agrocultual Tube-wells 6 0.05% 51 65 115 200 10.50 10 1,59 8 1.78 (3) (0.58) 200 133

Time of Use (TOO) - Peak 3 0.03% - 48 48 15.55 5 1.59 4 1.78 (1) (0.56) 1031

Time of Use (TOU) - Off-Peek 19 0.18% 58 148 206 200 7,75 30 1.59 20 168 (6) (0.56) 200 10.71

ric

07

167

968

1,133

170

174

Public Lighting - Tariff G

Residential Colonies

80

5

0,68%

0.04%

-

-

1,094

66

1,094

66

1180

1165

128

8

1,59

1.59

113

e

167

1.87

(38)

(2)

(0.5e)

(0.56)

1631

10 3i

Tariff K -A.11( 548 4.86% 592 5,967 8,559 360 10.90 871 1.59 875 1.65 (297) (0.56) 360 1151

Time of Use (TOU) - Peak 185 1.57% - 2,873 2,873 15,55 294 1.59 143 1.67 (48) (0.58) 18.21

Time of Use (TOU) - Off-Peak 694 5.90% 929 5,447 6,378 380 7.85 1,103 1.59 873 1.67 (226) (0.56) 380 10.5:

Tariff K -Rawet Lab 0 0.00% 4 4 1165 0 1.59 0 1.68 (0) (a 56) 16.31

Sub-Total

1,512

12.88%

1,521

15,451

18,872

2,404

1,811

(611)

Special Contract - Tariff

J-1 For Supply at 66 kV 8 above Time of Use (TOU) - Peak Time of Use (TOU) - Off-Peak

1-2 (a) For Supply 0111, 33 kV Time of Use (TOU) - Peak

-

- -

000% 0.00% 0.00% 0,00% 0.00%

-

-

-

- -

- - -

-

360

360 380

11.35 15.55

7.65 11.45 15.55

-

-

1.59 1,59 1.59 1.59 1,59

-

-

1.78 1.78 1.83 1.78 1.78

-

-

(0.58) (0.58) (0.56) (0.58) (0.56)

380

360 380

14.11

18.31 10.5 14.21 18.31

Time of Use (TOU) - Off-Peek - 0.00% • 380 7.75 1.59 1.85 (0.56) 380 106:

J-2 (b) For Supply at 68 kV 8 above - 0,00% - - 360 11.35 - 1.59 - 1,78 (0.56) 360 14.11

Time of Use (TOU) - Peak - 0,00% - - 15.55 1.59 - 1.78 (0.56) 173,31

Time of Use (TOU) - Off-Peak 0.00% - 360 7.65 - 1.59 1.83 (0.56) 360 - 10,5

J-3 (a) For Supply a111, 33 kV - 0.00% - - 380 11,45 1.59 - 1.78 (0.58) 380 . 13421

Time of Use (TOU) - Peak 0,00% - 15.55 - 1.59 - 1.78 - (0.56) 1811

Time of Use (TOU) - Off-Peak - 0,00% - 380 7.75 1.59 1.85 - (0.56) 380 108:

J-3 (b) For Supply at 66 kV & above - 0.00% 380 11.35 - 1.59 - 1.78 (0.56) 360 14.11

Time of Use (TOU) - Peak 0.0096 - - - 15.55 1.59 1.78 (0.58) 1034

Time of Use (TOU) - Off-Peak • 0.00% - - 360 7.85 1,59 - 1.83 - (0.56) 360 10.5:

Total Revenue 11,754 100.00% 7,362 122,474 129,836

18,476

14,359

(4,503)

I. The SoT attached with the instant decision of the Authority, includes column of PYA 2018 and PYA 2107 which are already notified vide SR0.377/(1)/2018 dated March 22, 2018 and would continue to be notified till March 21, 2019. The aforementioned

columns have been reproduced for the purpose of clarity only. If the competent Authority decides to re-notify the aforementioned columns with the instant SoT, the aforementioned columns shall remain notify 110 March 21, 2019 only and would cease to

exist thereafter.

II. Tariff under Columns PYA 2017and PYA 2018 shall remain applicable till March 21, 2019 and thereafter only Tariff under Columns Base Tariff and PYA 2018 shall remain applicable. Tariff Under Column PYA 2018 shall also cease to exist after one

year from the date of notification of this decision and thereafter only Tariff Under Column Base Tariff shall remain applicable till the same is superseded by next notification. IA

2a

SCHEDULE OF ELECTRICITY TARIFFS FOR ISLAMABAD ELECTRIC SUPPLY COMPANY I/ESCO)

A.1 GENERAL SUPPLY TARIFF - RESIDENTIAL

Sr. No. TAROT CATEGORY / PARTICULARS

FIXED CHARGES

Re/kW/St

VARIABLE CHARGES

Rs/kith

PTA 3018

Re/kWh

PYA 2017

Rs/ kWh

PYA 2016

Rs/kWh

Total Variable Charges

Rs/kWh

A 9 C D E F

a) For Sanctioned load Ins than 5 kW

I Up to 50 Units - 4.00 • - - 4.00

For Coasumption exceeding 50 Unit. II 001 - 100 Unita • 8.30 1.58 1.71 10.56) 11.03

Iii 101 - 200 Units - 11.70 1.55 1.71 (0.56) 14.43 Iv 201 - 300 Units 13.25 1.58 1.73 (0.56) 16.00

301 - 700 Units - 14.55 1.59 1.74 (0.561 17.32

vi Above 700 Units • 16.10 1.59 1.77 10.53) 18.93 Ill For Sanctioned load 5 kW 1. shove

Peak 01T-Peak Peak Off.Peak Peak Off-Peak Peak Off-Peak Peak Off.Peak

Time Of Use - 15.55 8.15 1.59 1.39 1.78 1.85 (0.56) (0.56) 18.36 11.03 As per Authority's decision residential consumer* will be given the beaefiti of only one previou slab.

Under tariff A-1, there shall be minimum monthly customer charge at the following rates nen if no energy is consumed.

Single Phase Connections: Rs. 75/. per consumer per month

hl Three Phase Connections:

Rs. 150/- per consumer per month

Rolm Tariff under Coium A and • shell remain applicable till March 21,1019 001y and thereafter only Column A, B and C shall remain applicable. Column C shall also cease to exist after one year from the dote of notification of this dmision and there•fter only Column A arid B shall rearalo applicable till the same to euperseded by next notification.

A-2 GENERAL SUPPLY TARIFF • COMMERCIAL

Sr. No. TARIFF CATEGORY / PARTICULARS FOXED

CHARGES Res/kW/111

,..,,,,.,,,., ,.....n.,.. ------ ------

Re/kWh

PYA 2018

Rs/kWh

PTA 2017

Rs/kWh

PTA 2016

Re/kWh


Re/kWh

0

b)

cl

A I C 0 It F

For Sanctioned load len than 5 kW

For Smetioued load 5 kW lb above

Time Of Use

400.00

400.00

14.65

11.65

1.59

1.59

1.73

1.73

10.56)

10.56)

17.41

14.41 Peak Off-Peak Peak Off-Peak Peak Off-Peek Peak Off-Peak Peak Off-Peak

15.55 8.15 1.59 1.59 1.78 1.88 (0.561 (0.561 16.36 11.06

Under tariff A-2, there shall be minimum mouth], charges at the following rates even if no one gy Is consumed.

a) Single Phase Connections( Rs. 175/- per manta. per month bl Three Plume Connections: Rs. 350/. per consumer per month

Nola: Tariff under Color.. A and F shall roman applicable till Starch 21, 2019 only and thereafter only Column A, B and C shall remain applicable. Column C elel also cease to cutlet after one year from the date of notification of this decision and thereafter only Column A and B shall remain applicable till the same is superseded by aeM notification.

Sr. No. TARIFF CATEGORY / PARTICULARS FIXED

CHARGES Re/kW/11

VARIABLE Eamon

Ra/kWb

PTA 2015

Re/kWh

PTA 2017

Re/1017h

PYA 3016

Rs/kWh


Ra/kWir A ■ C 11 E r

al General Services 13.43 1.59 1.78 40.561 16.26

Under tariff A-3, there shall be minimum monthly charges at the folinelug rate. non lino en p Is consumed.

al Single Phase Connections( Rs. 175/- per coneurser per month bl Three Phut, Connections: Rs. 350/. per consumer per month

Note: Tariff under Colossi A and F *ball remain applicable till March 21, 2019 only and thereafter only Column A, B and C shall rennin app5cable. Column C shall also cease to exist after on year from the date of notlfication of this Mullane and thereafter only Column A and B shall remain applicable till the male is superseded by next notification.

B INDUSTRIAL SUPPLY TARIFFS


CHARGES Its/kW/H

VARIABLE CHARGES

Rs/kWh

PTA 2018

Re/kWh

PYA 3017

Re/kWh

PTA 2016

Rs/kWh


Rs/kWh A II F D 0 F

111 Upto 25 kW let 400/230 Volts) - 11.65 1.59 1.78 10.56) 14.46

82101 exceeding 25.500 kW (at 400 Yokel 400.00 11.15 1.59 1.78 (0.56) 13.96

Time Of Use Peak Off-Peak Peak Off-Perth Peak Off-Peak Peek Off-Peak Peek Ott-Peak

R ll bl Up to 35 XIV 15.55 5.15 1.59 1.59 1.76 1.98 (0.561 10.561 18.36 11.16

52(b) exceediag 25-500 kW (at 400 Volts) 400.00 15.55 7.95 1.59 1.59 1.78 1.98 (0.56) 10.56) 18.36 10.96 83 For AN Loads up to 5000 kW (at 11.33 10.9 380.00 15.55 7.75 1.59 1.59 1.78 1.98 10.56) (0.56) 18.36 10.76

54 For All Loads let 66,132 by 6 aban) 360.00 15.55 7.65 1.59 1.59 1.78 1.88 (0.56) (0.56) 18.36 10.56

For Si consumers there shall be • fixed mialmum charge of Re. 350 per month. For 112 consumers there shall he a fixed minimum Minim of Rs 2,000 per month. For 113 consumers there shall be • fixed minimum charge of Rs. 50,000 per month. For B4 consumers there shall be • fixed minimum charge of Rs. 500,000 per month.

Note: Tariff under Coleus A and F shall remain applicable till March 21, 2019 0017 and thereafter only Column A, B and C shall remain applicable. Column C shall also cow to exist after one year from the date of notifintion of this decielon and thereafter only Column A and B shall remain applicable till the same la supernded by next aotification.

C - SINGLE-POINT SUPPLY


CHARGES Rs/kW/H

VARIABLE CHARGES

Re/kWh

PYA 2015

Rs/kWh

PYA 2017

Rs/kWh

PYA 3016

Rs/kWh

Ton/ Variable Charges

Re/k11/h A - II C 0 V F

C -1 For supply at 400/330 Volts a) Sanctioned load leas than 5 kW • 12.15 1.59 1.78 10.56) 14.96

b) Sanctioned load 5 kW • up to 500 kW 400.00 11.65 1.59 1.75 (0.561 14.46 C -21M For supply Ill 11,33 kV up to and includiag

5000 kW 380.00 11.45 1.59 1.78 10.561 14.26 C -3)17 Tor supply at 66 kV • above and sanctioned

load above 5000 kW 360.00 11.35 1.59 1.78 10.56) 14.16

Time WU. Peak Off-Peak Peak Off-Peel Peak Off-Peak Peak Off-Peak Peak Off-Peek

C -11c) For supply at 400/230 Volts 5 kW • up to 500 kW 400.00 15.55 8.15 1.59 1.59 1.76 1.85 10.56) 10.56) 18.36 11.03

C -3(61 Tor supply at 11,33 kV up to and including 5000 kW 350.00 15.55 7.75 1.59 1.59 1.75 1.85 (0.56) (0.561 18.36 10.63

C -31b) For supply at 66 kV • above and sanctiorred load above 5000 kW 360.00 15.55 7.65 1.59 1.59 1.78 1.83 (0.56) 10.56) 18.36 10.51

date of notification of this Mahlon and thereafter only Column A and remain applicable till the same is superseded by next notification. Note: Tariff under Coburn A and remain applicable till Starch 2 , 2019 only and thereat r only Column A, end C remain applicable. 1:0012 C shall also tease to exl t after one year from Ur

Izo ER REG, cN5) (/<„

...a .4 NEPRA ' 113 0

AUTHORITY Page 1 of 2

la I Odr, ON4)(1

Atutex.111

SCHEDULE OF ELECTRICITY TARIFFS FOR ISLAMABAD ELECTRIC SUPPLY COMPANY OESCOI.

D - AGRICULTURE TARIFF

Br. No. TARIFF CATEGORY / PARTICULARS MOD

CHARGES 0/kW/11

VARIABLE CHARGES

0/k1.

PTA 2018

0/k1711

PYA 2017

0/k1/1.

PYA 2016

0/kWh


Rs/kWh A B C D E E

1311•1 SCARP lass than 5 kW • 12.55 1.59 1.78 (0.56) 15.36 0.21a) Apical... Tube Wells 200.00 10.00 1.39 1.78 (0.56) 13.31

Peak Off-Peak Peek Off-Peak Peak OR-Peak Peak Off-Peak Peak OR-Peak D.1(3) SCARP 5 kW • above 200.00 15.55 7.75 1.59 1.59 1.78 1.90 (0.561 (0.56) 18.36 10.68 D-2 (b) Agrioultural 3 kW 6 above 200.00 15.55 7.75 1.59 1.59 1.78 1.95 10.561 10.56) 15.36 10.76

Undar this tariff, there shall be minimum monthly charges 0.2000/ per consumer per month, even If no en ra Is consumed. Note:. The 00000 mers having sanctionsd load le. than 5 kW can opt for TOO met ring.

Not. Tariff under Colum A and F shall remain applicable till Much 11, 3019 only and thereafter only Column A, B and C shall remain applicable. Column C shell else cease to exist after one year from the data of notilloatioa of this decl•lon and thereafter onl Column A and B shall remain licable till the mane is su rsedad b oast notification.

E TEMPORARY SUPPLY TARIFFS

FIXED VARIABLE CHARGES PTA 1018 PYA 2017 PTA 2016 Total Variable Charges Br. No. TARIFF CATEGORY / PARTICULARS CHARGES Rs/kW/M 0/kW1. Ra/kl. 0/kW1. 0/kWh 0/k1.1

A B C D E r

61111 Residential Supply . 15.85 1.59 1.78 10.56) 18.66 611111 Commercial Supply - 14.65 1.59 1.73 (0.561 17.41 0.2 Industrial Supply 11.65 1.59 1.78 (0.561 14.46

For the categories of 6111611) above, the minimum bin of the consumers shall be Ra. 50/- per day subject to • minimum of 0.500/. for the antire period of supply, am If no energy Im consumed.

Note: Tariff under Celan. A and F shall remain applicable till March 21, 2019 only and thereafter only Column A, B and C shall remain applicable. C0111010 C shall also cease to 101st after one year from the date of notIll.tion of this decialon and thereafter only Column A and B shall remain applicable till the acme is superseded by oext notification.

F SEASONAL INDUSTRIAL SUPPLY TARIFF

125% of relevant industrial tariff Note: TarlIT-F consume. will have the option to convert to Regular Tariff and vice versa. This option can be exercised at the time of • new connection or at the beginning of the ...on. One. exercised

, the option remains In force for at least one year.

G- PUBLIC LIGHTING


CHARGES Rs/kW/11

VARIABLE CHARGES

0/k11/1.

PYA 2018

Rs/kWh

PYA 2017

Rs/kWh

PEA 1016

0/kWh


Rs/IrWl. A B C D E F

Street Lighting - 13.60 1.59 1.67 (0.56) 16.30

Under Tariff 0, there shall be • minimum monthly charge of 0.500/ per mouth per kW."( lamp capacity installed.

Note: Tariff under Colum A and F shall romalo applicable till March 21, 2019 only and thereafter only Column A, B and C shall remain applicable. C011111212C shell also sease to exist after one year from the data of notifloatIon of this dacha. and thereafter only Column A and II shall remain applicable till the arms is superseded by oast notification.

• RESIDENTIAL COLONIES ATTACHED TO INDUSTRIAL PREMISES

8r. No. TARIFF CATEGORY / PARTICULARS FIXED

CHARGES

0/k./111

VARIABLE CHARGES

Rs/kWh

PYA 2018

Rs/10.

PTA 2017

0/kWh

PYA 1016

Rs/kWh


Rs/kWh A I F

Regd... Colonies attached to industrial premises 13.65 1.59 1.67 10.56) 16.35

NO. Tariff under Colum A and P shall rentse applioablo till March 21, 1019 only and thereafter only Column A, 8 and C shall remain applicable. Column C shall also cease to ardst after one year from the date of notification of this declaims and thereafter only Column A and B shall remain applicable till the sauna is super.ded by next notification.

- SPECIAL CONTRACTS


CHARGES

0/kW/11

VARIABLE CHARGES

its/kWh

PYA 2018

0/kWh

PTA 2017

10/kWh

PYA 2016

0/kWh


0/kWh A B

1

2

Azad Jammu • Kashmir 1/1.1X1

Time Of U.

Rawat Lab

360.00

360.00

10.90 1.59 1.63 (0.561 13.38 Peak Off-Peak P.11. Off-Peak Peak Off-Peak P•ak Off-Peak Peak Off-Peak .I

15.55 7.88 1.59 1.59 1.67 1.67 (0.56) 10.56) 18.251 10.55

13.65 1.39 1.68 (0.561 16.36

Note: Tariff under Colum A and F shall remain applicable till March 21, 2019 only and thereafter only Column A, B and C shall remain applicable. Column C shall also cease to exist after one year from the date of notification of lb. decision and thereafter only Column A and B 4.1 Tama. applicable fill the .me Is superseded by next notification.

SUPPLY OP POWER REGULATIONS 2015

Sr. No. TARIFF CATEGORY / PARTICULARS rump

CHARGES Rs/kW/111

VARIABLE CHARGES

Rs/kWh

PYA 2018

Rs/kWh

PYA 2017

0/kWh

PYA 2016

0/kWh


Re/kWh A 0 C D E F

4 •1 For supply at 66 kV • above and having sanctioned lo. of 2010/ • above 360.00 11.35 1.39 1.75 10.56) 14.16

J-1 1.1 For supply . 11,33 kV 380.00 11.45 1.59 1.711 10.56) 14.16 (b) For supply at 66 kV fa above 360.00 11.35 1.59 1.75 10.56) 14.16

4.3 1. For supply at 11,33 kV 380.00 11.45 1.59 1.78 (0.561 14.26 (b( For supply at 66 kV 6 above 360.00 11.35 1.59 1.78 10.561 14.16

1100 MU. Pe. Off-Peak Peak Off-Peak Peak Off-Peak Peak Off-Peak Peak Off.Peak J -1(b) For supply at 66 kV • above and having

sanctioned led of 2011W it above 360.00 15.58 7.65 1.59 1.39 1.78 1.83 (0.56) (0.56) 18.36 10.51 32 (c) For supply at 11,33 kV 380.00 15.55 7.75 1.59 1.59 1.73 1.85 (0.561 10.561 18.36 10.63 3.2 Id) For supply at 66 kV • above 360.00 15.55 7.65 1.59 1.59 1.78 1.53 10.56) 10.56) 13.36 10.51 4-3(01 for supply at 11,33 kV 380.00 15.35 7.73 1.59 1.39 1.75 1.83 (0.56) 10.56) 18.36 10.63 4.3 (d) For supply at 66 kV • ahoy. 360.00 15.53 7.65 1.59 1.59 1.78 1.53 (0.56) (0.561 18.36 10.51

Note: Tariff under Colon A and F shall remain applicable HU March 21, 2019 onIy and tbereaft r only Column A, B and C shall remain applicable. Column C shall alms ea.sso to exist after one year from the date of notification of this decision and thereafter only Column A and II shall remain applicable till ...me la ....dad by next notification.

Page 2 Of 2

11

Annex-IV

IESCO Power Purchase Price

Name July August September October November December I

888

I January I February March I April May June I Total

Units Purchased by DISCOs (GWh)

I

1,344

I

1,340

I

1,238 990

I

816 863 764 860 986 1,363 1,416 12,867

kWh

Fuel Cost Component 3.2708 2.5111 2.4588 2.9120 2.3306 3.4328 4.6523 3.6723 3.9777 4.3148 4.2633 4.3499' 3.505,

Variable 0 & M 0.2393 0.2332 0.2218 0.2402 0.2269 0.2838 0.3350 0.2726 0.2979 0.3218 0.2876 0.2685 0.266

CpGenCap 4.4509 4.4768 4.4032 4.9437 5.0250 5.7715 5.4334 5.1100 4.7310 5.0567 4.0740 3.8437 4.678

USCF/M0F 0.2669 0.2804 0.2783 0.3118 0.2951 0.3548 0.3091 0.3113 0.2775 0.3286 0.2670 0.2621 0.2911

Total PPP in Rs. /kWh 8.2279 7.5014 7.3620 8.4076 7.8777 9.8429 10.7298 9.3662_ 9.2840 10.0219 8.8919 8.7244 8.7404

Rs in Million

Fuel Cost Component 4,396 3,364 3,043 2,883 1,902 3,048 4,016 2,807 3,419 4,253 5,811 6,159 45,102

Variable 0 & M 322 312 274 238 185 252 289 208 256 317 392 380 3,426

CpGenCap 5,982 5,998 5,450 4,894 4,101 5,124 4,690 3,905 4,067 4,985 5,553 5,443 60,192

USCF/M0F 359 376 344 309 241 315 267 238 239 324 364 371 3,746

PPP 11,057 10,051 9,112 _ 8,323 _ 6,430 8,739 9,263 7,158 7,981 9,879 12,120 12,353 112,466

It is clarified that PPP is pass through for all the DISCOS and its monthly references would continue to exist irrespective of the financia year, unless the new SOT is revised and notified by the GOP 11

it

23

national electric power regulatory authority off islamic

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