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Tuesday May 21, 2024

On account of March FCA: Power division seeks additional Rs2.94 per unit in May bills

A petition has been submitted to Nepra asking for additional charges on account of the monthly fuel charges adjustment (FCA) for March 2024

By Israr Khan
April 17, 2024
The National Electric Power Regulatory Authority (Nepra) headquarters can be seen in this picture released on November 4, 2021. — Facebook/NEPRA
The National Electric Power Regulatory Authority (Nepra) headquarters can be seen in this picture released on November 4, 2021. — Facebook/NEPRA

ISLAMABAD: The Power Division through Central Power Purchasing Agency (CPPA) has sought permission from National Electric Power Regulatory Authority (Nepra) to charge Rs2.94 per unit additional from power consumers in May 2024 bills.

A petition has been submitted to Nepra asking for additional charges on account of the monthly fuel charges adjustment (FCA) for March 2024.

After accepting the petition, Nepra will announce the date for holding a public hearing on it. The government/CPPA will justify its demand, and after that, the power regulator will make a final decision, said an official of the power division.

If Nepra allows the additional charges, it would apply to all consumer categories except for electric vehicle charging stations (EVCS) and lifeline consumers of all DISCOs.

It is to be noted that Nepra recently allowed ex-Wapda power distribution companies (XWDISCOs) to collect Rs4.921 per unit from consumers in April 2024 bills on account of FCA for February 2024.

Likewise, the power regulatory authority had allowed Rs7.05 per unit additional collection from power consumers for January 2024 FCA.

Notably, in its decision for February 2024 FCA, the regulator noted with concern that the overall demand had reduced by around 12 percent till February 2024 as compared to the reference projections assumed in tariff. This decrease in sales would consequently result in higher quarterly adjustments, leading to further increases in tariffs.