NEPRA notifies eight-month variations in fuel charges

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has finally notified adjustments in the approved tariff on account of variations in the fuel charges for eight months ending June 2020.

According to a NEPRA notification, the authority has made adjustments in the approved tariff on account of variations in fuel charges for the months of November 2019 till June 2020, in respect of power distributing companies (DISCOs).

These adjustments will be charged in electricity bills to be issued in the months of August and September 2020.  

“DISCOs will reflect the fuel charges adjustment in respect of each month in the billing month as per the schedule given above. While affecting the fuel adjustment charges, DISCO will keep in view and strictly comply with the court order,” the NEPRA notification read.

As per details, fuel cost adjustment (FCA) pertaining to January, February, March and May would be charged in consumers bills to be issued in August 2020, while FCA for the months of November 2019, December 2019, April 2020 and June 2020, would be charged in September 2020.

NEPRA notified 0.9824 per kWh FCA for November 2019, as actual fuel cost was Rs3.4701 per unit as against the reference fuel cost of Rs2.4877 per unit, while it notified Rs1.8779 per unit FCA for December 2019, as actual fuel cost stood at Rs6.3381 per unit as against reference fuel cost of Rs4.4602 per unit.

Similarly, the authority notified an FCA of Rs1.1108 per kWh for January 2020 (actual fuel cost was Rs6.8684 per kWh against reference cost of Rs5.7576), Rs1.2051 for February 2020 (actual fuel cost was Rs 5.1760 per unit against reference fuel cost of Rs3.9710), and Rs0.1069 per unit for March 2020 (actual fuel cost was Rs5.1079 per unit as against reference fuel cost of Rs5.0010.

Also, NEPRA notified FCA of Rs0.7040 per unit for April 2020 (actual fuel cost was recorded at Rs4.5319 per unit against reference fuel cost of Rs5.2359), Rs1.2517 per unit for May 2020 (actual fuel cost recorded at Rs3.7939 per unit against reference fuel cost of Rs5.0457 per unit) and Rs1.0581 per for June 2020 (actual fuel cost registered at Rs4.0550 per unit against the reference cost of Rs 5.1130).

Pursuant to Section 31 (7) of the Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act 2011, the NEPRA makes and notifies monthly adjustments in the approved tariff on account of variations in fuel charges for DISCOs.  

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  1. In view of the Climate Change/Environmental pollutions from Furnace Oil the major fuel being used by KE and other DISCOS.
    The fruit of emissions/carbon discharge from the use of fossil fuels is killing us with a re-occuring process of Climate Change. It is very important for DISCOS in Pakistan to obtain the NOC for the use fossil fuels including Furnace Oil with major by the KE.

    I’m surprised neither the KE obtained any NOC nor the Climate Change Division, Government Pakistan concerned with the exception to the punishment the country is bearing from heavy downpour/rains.

    The UN/WHO has regularly warned about the consequences of Climate Change for Karachi, Pakistan for thunder storm, heavy down pour also the WMO.

    The only alternate fuel available for DISCOS/KE is develop Solar Parks as in Punjab and resultant peace in Climate Change.

    Since all the benefits/subsidies/awareness/warnings from the UN and related organisations worldwide are using nuclear/renewable energy worldwide.

    I suggest the honorable Disaster Management Authoity which saved the city of Karachi from Climate Change resulting in total power failure, highest tariff for industrial, commercial, domestic consumers. Despite the incentives of zero Custom duty why it is not considered.

    May I suggest the Honorable Disaster Management Authority to please monitor/observe/audit the KE generated Electricity awarding the city with the consequences of Climate Change.

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