ISLAMABAD: On Wednesday, National Electric Power Regulatory Authority (Nepra) Chairman Waseem Mukhtar advised power companies to minimize the visibility of a Rs1.89 per unit increase in the quarterly tariff adjustment for the fourth quarter (April-June) of FY24, suggesting they project only a 96 paise per unit increase instead.
During a public hearing on the fuel cost adjustment (FCA) for July, Mukhtar highlighted a 31 paise per unit reduction in the FCA at the start of the new fiscal year. He credited this drop to the recent increase in the base tariff, effective from July 1, which also accounted for transmission constraints. He commended the Central Power Purchasing Agency (CPPA) for incorporating these constraints into the tariff structure.
Nepra’s statement revealed that the power companies had requested a QTA of Rs1.89 per unit for the fourth quarter of last year, which would amount to Rs46.99 billion if applied to September, October, and November bills. An existing QTA of 93 paise per unit was set to expire, resulting in an additional 96 paise per unit increase for September.
Mukhtar noted that the positive FCA for June was Rs2.56, which was billed to consumers in August. With a negative 31 paise FCA for July, September bills would be approximately Rs1.91 per unit lower than August, considering both the positive QTA and FCA. He stressed the need to project these figures accurately.
However, neither Mukhtar nor the statement addressed the additional impacts for October and November, nor were comparisons of effective tariffs for the respective months disclosed. Despite this, Nepra is permitting an additional Rs46.99 billion burden on consumers for the upcoming quarter through the QTA.
Nepra member Anwar Maqsood Khan from Khyber Pakhtunkhwa expressed frustration that transmission constraints, which he had tried to address over his four-year tenure, remained unresolved. Fellow Nepra member Rafique A Shaikh from Sindh pointed out that due to these constraints, costly power plants had been operated, passing on their high costs to consumers. He called for accountability and stressed the concerning rise in electricity bills, which now exceed many household rents, labeling the situation a matter of shame.
