Fuel Cost Adjustment: Power consumers to pay additional Rs1.37 per unit for July bills

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed distribution companies to collect an additional Rs1.37 per unit from power consumers for the month of July 2021 in an account of Fuel Cost Adjustment.

According to a notification issued by the Nepra on Friday, the surcharge will be collected from consumers by distribution companies in the billing month of September. However, the Lifeline consumers, who consume up to 50 units per month, and the consumers of K-Electric will be exempted from this burden.

The power regulator held a public hearing on the petition of the Central Power Purchasing Agency on September 1 to determine the monthly Fuel Cost Adjustment for the month of July 2021. The CPPA had sought an increase of Rs1.47 per unit in tariffs of distribution companies for the said month under the monthly FCA mechanism.

During the hearing, the authority observed that certain efficient power plants were not fully utilised; instead the energy worth Rs29.924 billion was generated from costlier RFO or HSD based power plants for July 2021.

The regulator maintained that the financial burden for non-availability of RLNG shall not be passed on to consumers. The regulator asserted that both, the system operator and Central Power Purchasing Agency, have once again failed to comply with the directions of regulator regarding provision of financial impact against violation of economic merit order in power plant operations.