ISLAMABAD: Amid a dissenting note by member Sindh, the National Electric Power Regulatory Authority (Nepra) on Thursday notified an additional fuel cost adjustment (FCA) of Rs5.95 per unit to be charged to consumers of ex-Wapda distribution companies (Discos) during current billing month to mop up about Rs58 billion.
Simultaneously, the regulator also accepted a petition of the federal government that sought up to 95 paisa per unit increase in base tariff across the country to reduce the Rs20bn subsidy.
While the FCA of Rs5.95 per unit additional charge has become effective immediately for recovery from consumers, the base tariff adjustment would require a final decision by the government before its formal notification at a later date.
Interestingly, Prime Minister Imran Khan had recently announced a Rs5 per unit reduction in national electricity tariff a few days ago but its mechanism has not been finalised yet nor referred to the Nepra for implementation.
Sindh member says consumers should not bear the cost of RLNG fiasco
The “adjustment of an increase of Rs5.9490/kWh shall be applicable to all the consumer categories except lifeline consumers of all the XWDISCOs (ex-Wapda Discos),” said the regulator in a notification issued here. It asked the Discos that the said adjustment shall be shown separately in the consumers’ bills on the basis of units billed to them in the month of January 2022 and reflect it in the billing month of March 2022.
The Discos had sought almost 95pc increase in their fuel price adjustment against the reference fuel cost – Rs6.10 per unit (kWh) – for electricity they sold in January to grab about Rs60bn additional funds. The regulator, however, allowed an increase of Rs5.95 per unit after minor adjustments here and there.
On behalf of Discos, the Central Power Purchasing Agency (CPPA) had claimed the consumers were charged a reference fuel cost of Rs6.5124 per unit in January, but the actual cost turned out to be Rs12.62 per unit, hence an additional charge of about Rs6.10 per unit to consumers. The regulator calculated the actual fuel cost at Rs12.46 per unit, with additional fuel price adjustment of Rs5.95 per unit.
Vice Chairman Nepra and Member Sindh Rafique A Shaikh, however, dissented to the regulator’s notification. “The mismanagement into the availability of required RLNG should not be passed on to the consumers,” he said. Mr Shaikh further expressed his reservations on the purchase of electricity from IPPs whose power purchase agreements had not been approved by regulator.
