ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday accorded in-principle approval of positive fuel charges adjustments (FCAs) of Rs1.81/unit for Discos and Rs2.3112/unit for K-Electric for June 2023. These per-unit increases will be collected from power consumers in their August 2023 bills.
This will result in an impact of nearly Rs29 billion (including GST) for the Discos and approximately Rs5.1 billion (including GST) for K-Electric consumers. The proposed increase will be applicable to all consumer categories, except electric vehicle charging stations (EVCS) and lifeline consumers. On July 26, the authority held public hearings on the petitions of these companies. The petitions were in relation to the monthly FCAs for June 2023. Now, on Wednesday, it issued the final decisions. According to the CPPA petition, during the month of June, consumers’ reference fuel charges were Rs7.5084 per unit, but the actual fuel cost amounted to Rs9.3930 per unit. The petition had asked for Rs1.8846 per unit to be passed on to consumers. The K-Electric had asked for Rs2.336/unit positive adjustment. For May 2023, the FCA for Discos witnessed an increase of Rs1.9039 per unit, while K-Electric saw an increase of Rs1.4465 per unit.
The authority stated that a power purchase agreement was initially signed between NTDCL and K-Electric on January 26, 2010 for a five-year period to buy/sell 650 MW at basket rates. Later, the Council of Common Interests (CCI) decided on November 8, 2012 to reduce power supply by 300 MW from NTDCL to K-Electric. This decision was contested by K-Electric in the Sindh High Court. As of now, there is no new agreement between K-Electric and NTDCL. Despite this, the K-Electric continues to draw about 1,100 MW of energy from the national grid.
