Power tariff raised by Rs5.94/unit for Jan

KARACHI: The National Electric Power Regulatory Authority (NEPRA) on Thursday raised the power tariff by Rs5.94 per unit on account of Fuel Charges Adjustment (FCA) for January 2022. According to a notification of NEPRA, the FCA for January 2022 will be charged in the bills of March 2022, which will be paid by all consumer categories of distribution companies, except for lifeline customers of all ex-WAPDA distribution companies (XWDISCOs).

The said adjustment shall be shown separately in the consumers’ bills based on units billed to the consumers in the month of January 2022 by the XWDISCOs, the notification said. The Rs5.94 per unit increase will put a burden of Rs58.5 billion on consumers, including GST.

"While effecting the fuel adjustment charges, the concerned XWDISCOs shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” the notification stated. The authority conducted the hearing on February 28, 2022 for FCA in Islamabad and reviewed the information provided by CPPA-G seeking monthly FCA.

According to NEPRA, the actual pool fuel cost for the month of January is Rs12.6184 per KWh against the reference fuel cost of component of Rs6.5124 per kWh. The increase in power tariff in the power bills came 10 days after the prime minister announced a cut of Rs5 per unit till next budget.

Commenting on the power tariff increase by NEPRA, Muzzamal Aslam, Spokesman of Finance Minister, said that as per the summary approved by the Economic Coordination Committee (ECC), the PM’s relief package on power tariff is applicable on base tariff.

The ECC approved the PM’s relief package of Rs5 per unit by way of reduction in electricity charges base rate for the relief period of four months (March 2022 to June 2022). The relief package will be applicable to all commercial and domestic non-ToU consumers having monthly consumption up to 700 units, excluding life-line consumers. The cash flow requirement for the PM Relief Package is Rs136 billion.