NEPRA notifies 89-paisa per unit increase in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has notified a Rs0.8954 per unit increase in power tariff under the head fuel charge adjustment (FCA) for the month of January 2021.

According to NEPRA, the FCA for January 2021 would be charged in the billing month of March 2021 from all consumer categories of power distributing companies (DISCOs), except lifeline consumers i.e. consumers of up to 50 units. This FCA is, however, not applicable to K-Electric consumers.

Earlier, the Central Power Purchasing Agency (CPPA) had requested NEPRA to approve an FCA of Rs0.9270 per kWh for January. Subsequently, the authority, during its hearing in this regard on February 25, approved an FCA of Rs0.8954 per kWh — having an impact of Rs6.9 billion on the masses.

As per documents, the actual fuel charge component for January 2021 was recorded at Rs6.6530 per unit against the reference fuel charge component of Rs5.5776 per unit. Due to fuel price variation for the month under review, a power tariff hike of Rs0.8954 per unit was approved.

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On the date fixed for hearing, representatives of CPPA, National Power Control Center (NPCC), National Transmission & Despatch Company (NTDC), media and general public were present; however, no representative from WAPDA Power Privatization Organization (WPPO), Sui Southern Gas Company Limited (SSGCL), Sui Northern Gas Pipeline Limited (SNGPL), Ministry of Energy and Ministry of Finance attended the hearing despite service of notices.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, (NEPRA Act) read with the mechanism/formula determined by the authority in the tariff determinations for the DISCOs for the FY2017-18 and notified in the official gazette, NEPRA has to make adjustments in the approved tariff on account of any variations in the fuel charges on a monthly basis.

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]
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