NEPRA increase power tariff by Rs.4.34 per unit on account of FCA

The National Electric Power Regulatory Authority (NEPRA) on Monday increased the power tariff by Rs.4.34 per unit on account of fuel charges adjustment (FCA) for DISCOS for the month of July 2022.

The Central Power Purchasing Agency– Guarantee (CPPA-G)  had requested to increase per unit cost by Rs4.69, after which NEPRA held a public hearing on August 31 to consider the monthly FCA — a system through which electricity prices are adjusted as fuel prices fluctuate.

According to the preliminary examination of the data, Nepra had worked out an increase of Rs4.3435 per unit.

Earlier in June, power distribution companies charged Rs9.90 per unit on account of fuel adjustment, which was for one month only. The distribution companies would charge Rs5.56 per unit less than June in September bills under the FCA. This will also apply for only one month.

This will apply to all DISCOS’ customers except lifeline consumers. However, the K-Electric consumers will be exempted. The Rs4.34 increase will put a burden of over Rs69 billion on consumers, including GST.

People raised concerns earlier this month after receiving inflated bills for the month of August, which included hefty amounts under the FCA.

However, following massive protests that broke out across Pakistan over inflated bills, Prime Minister Shehbaz Sharif directed authorities concerned to waive off FCA amounts from the bills of people who have consumed less than or equal to 300 units.