NEPRA notifies Rs2.52 per unit hike in power tariff

Adjustment shall be shown separately in consumers’ bills, notification states; Govt approves NEPRA's winter incentive package

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Tuesday notified a Rs2.52 per unit hike in the price of power on account of fuel charges adjustment for September 2021.

According to a notification issued on Tuesday in this regard, the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested a positive FCA of Rs2.65 per unit.

The FCA for September 2021 will be charged with the bill of November 2021, which will be paid by all consumer categories of distribution companies, except for the lifeline consumers of all XWDISCOs except K-Electric whereas the increase will be charged from consumers in billing month of November.

According to sources, the most recent price hike will put a burden of Rs40 billion on consumers.

It may be mentioned here that actual fuel charge for September was Rs7.5502/kWh while corresponding reference fuel charges were fixed at Rs5.0229/kWh and fuel price variation was Rs2.5272/kWh.

The notification also said that the said adjustment shall be shown separately in the consumers’ bills on the basis of units billed in the month of September by DISCOs.

In another development, the Power Division on Tuesday issued an official notification of the winter package for making electricity cheaper under a special package for the ongoing winter, starting from November 1 to February 28, 2022.

“The federal government is pleased to notify the Winter Incentive Package for the period of November 1, 2021, to February 28, 2022, in pursuance to NEPRA’s order dated November 3, 2021,” a notification in this regard said.

“The rate of Rs12.96/kWh shall be charged to domestic consumers (Non-ToU) on the incremental consumption, above monthly 300 units or above the reference consumption in the corresponding months of the reference period, whichever is greater,” it read.

According to NEPRA notification, the authority has no objection in approving the instant proposal regarding winter incentive package for residential, commercial and general services consumers of XWDlSCOs as proposed by the Ministry of Energy.

As per details, Rs12.96/kWh shall be charged from domestic consumers (ToU) and commercial consumers (ToU) on the respective peak and off-peak incremental consumption, above monthly 300 units or above the reference consumption in the corresponding months of reference period, whichever is greater.

“New and existing consumers having no reference consumption available in the period of November 2020 to February 2021 shall be offered the same package at the concessionary rate of Rs12.96/kWh through benchmark consumption methodology,” the notification read.

Similarly, rate of Rs.12.96/kWh shall be charged from commercial consumers (non-ToU) and general services consumers on the incremental consumption above the reference consumption in the corresponding months of the reference period.

The Power Division also mentioned that no quarterly adjustments would be applicable on incremental consumption.

Moreover, on incremental consumption, only positive fuel price adjustments shall be passed on to the consumers availing incremental consumption package.

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

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