ECC delays decision on passing of fuel charge adjustments to consumers

Power Division says any delay in charging FCA to consumers would result in a cash shortfall of around Rs17bn for the power sector

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ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday failed to take a decision regarding the passing on of Fuel Charge Adjustments (FCA) to consumers due to stiff resistance from some committee members.

According to sources during a meeting of the ECC presided over by Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh, some committee members expressed reservations regarding the proposed decision stating that any further increase in power tariffs would further annoy consumers who are already suffering from high rates of electricity.

Earlier on August 7, National Electric Power Regulatory Authority (NEPRA) had notified FCA for the period November 2019 to June 2020 which was to be passed on to the consumers in August and September 2020.

The FCA rate for the month of August 2020 was proposed at Rs2.4226 per unit for domestic consumers who consume upto 300 units and Rs1.1711 per unit for other categories of consumers. The FCA rate for the month of September 2020 was proposed at Rs2.8603 per unit for domestic consumers who consume upto 300 units and Rs1.0982 per unit for other consumers.

The Power Division was of the view that any delay in charging FCA would result in a cash shortfall of around Rs17 billion for the power sector.

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