By Staff Reporter
ISLAMABAD: Power regulator Nepra on Thursday allowed fuel cost adjustments (FCA) of Rs11.37 to Karachi-based power utility K-Electric and Rs9.89/unit to electricity distribution companies Discos.
The higher electricity rates will be applied on billing month of August, except those whose monthly power consumption is fewer than 50 units.
A day earlier, the government announced an increase of Rs7.91 per unit in average base tariff across the country in three phases starting with effect from July. It has also approved Rs1.55 per unit increase in base tariff across the country under a quarterly adjustment.
“At the conclusion of two separate public hearings presided over by Nepra chairman Tauseef H. Farooqui and members Rafique Shaikh and Maqsood Anwar Khan, the power regulator graciously cut two paise each from the tariff increase demanded by both K-Electric and all 10 Discos”.
The Central Power Purchasing Agency (CPPA) — a subsidiary of the power division — earlier filed a petition on behalf of Discos for a record Rs9.91 per unit additional monthly FCA for electricity sold to consumers in June to generate about Rs133bn in additional funds through the billing month of August.
The additional FCA is almost 166pc higher than the reference fuel cost charged to consumers in June, which is also an unprecedented mismatch between estimated and actual fuel costs. However, Nepra cleared an additional FCA of Rs9.89 per unit, two paise less than the amount sought.
Separately, K-Electric had requested for Rs11.39 per unit additional FCA for June with an additional revenue impact of Rs22.25bn. The Karachi-based power utility said a major reason behind its higher FCA was 50pc expensive liquified natural gas (LNG) and a 74pc increase in power purchase from the CPPA. As a result, Nepra cleared an additional FCA of Rs11.37 per unit.
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