NEPRA hints Rs4.68 per unit hike under FPA of February, 2022

National Electric Power Regulatory Authority (NEPRA) on Thursday hinted to approve power tariff hike by Rs4.68 per unit on account of monthly Fuel Price Adjustment (FPA) for the month of February 2022.

As per details, electricity consumers of all power distribution companies (DISCOs) except K-Electric are likely to pay additional Rs4.68 per unit in April under the head FPA of the month of February 2022 as NEPRA on Thursday has given indication in this regard during a public hearing. However, the authority, on the occasion, has also made it clear that the NEPRA will issue its detailed judgement on FPA of February 2022 after scrutiny of the data submitted by the CPPA.  

According to NEPRA, the actual FPA is Rs4.68 per unit for the month of February while Central Power Purchasing Agency (CPPA) on behalf of power distribution companies (DISCOs) except K-Electric had requested to approve Rs4.94 per unit hike in the power price.

Speaking in a public hearing held to consider the FPA of February, NEPRA chairman Tauseef H. Farooqi said that the FPA of February was Rs1.26 per unit less than January’s, and this increase will not be applicable to K-Electric’s consumers. He said that power generation with hydel source was reduced in February and to fill this gap the power production with furnace oil and Liquefied Natural Gas (LNG) was increased while fuel prices witnessed an upward trend in the international fuel market.

Owing to a relief package of the Prime Minister, consumers may not bear additional burden, said NEPRA chairman.

NEPRA officials while giving briefing said that the additional burden of Rs1 billion 37 crore and 70 lakh on the power consumers was only because of violation of merit order for the power generation in the month of February. They said a burden of Rs1 billion 37 crore and 40 lakh was due to shortage of LNG which resulted in 17 paisa per unit increase in the power price.

Earlier, CPPA on behalf of all power distribution companies (DISCOs) except K-Electric requested NEPRA to approve Rs4.94 per unit hike in the power price under the head FPA of February 2022.

Meanwhile, NEPRA has increased the power price hike by Rs3.27 per unit on account of FPA of January 2022 for K-Electric consumers and issued a notification in this regard while the authority is scheduled to hold a hearing regarding FPA of February on April 4, 2022 as K-Electric had sought Rs3.45 per unit hike for its consumers.

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