Power consumers to see 2nd consecutive bill cut in October

ISLAMABAD: Power consumers will see a modest reduction in their electricity bills for the second consecutive month, following 18 months of steady increases in fuel cost adjustments (FCAs).

Ex-Wapda distribution companies (XWDiscos) have informed the National Electric Power Regulatory Authority (Nepra) of their willingness to refund Rs0.5755 per unit to consumers in October 2024 bills. The adjustment is based on fuel charges for August 2024.

The adjustment, though small, marks a welcome departure from the persistent rise in fuel costs that has strained households and industries alike. The recent dip in international fuel prices appears to have provided some relief to the country’s beleaguered energy sector, though long-term challenges remain.

The Central Power Purchasing Agency (CPPA), on behalf of these power distribution companies, has submitted its application to the power regulator which would hold a public hearing on it on September 26, 2024.

Interestingly, in its earlier decision for July’s FCA, the Nepra had decided and directed Discos to refund Rs0.3692 per unit to consumers in their September bills. It is worth-noting that from January 2023 to June 2024, the fuel cost adjustment (FCA) for distribution companies (Discos) remained positive, resulting in extra charges for power consumers. During this period, the highest positive FCA was Rs7.056 per unit in January 2024, while the lowest was Rs0.0006 per unit in February 2023. If the regulator accepts the CPPA’s plea, this adjustment/relief would be available to all user categories except lifeline power consumers, domestic consumers consuming up to 300 units, electric vehicle charging stations (EVCS), pre-paid electricity consumers of all categories, who opted for pre-paid tariff and agriculture consumers of all the XWDiscos.