Power tariff may increase Rs3.15 per unit under FCA of March 2022

Central Power Purchasing Agency (CPPA) has asked the National Electric Power Regulatory Authority (NEPRA) to increase the power tariff by Rs3.15 per unit on account of fuel charges adjustment (FCA) for the month of March 2022.

As per details, CPPA has requested NEPRA to jack up the power price by Rs3.15 per unit under the head FCA of March 2022 and the NEPRA’s hearing on the matter is scheduled on April 27, 2022.

The CPPA, in its application, informed the NEPRA that more than ten billion units of electricity were produced in the month of March 2022 from different sources of fuel including hydel, furnace oil, Liquefied Natural Gas (LNG) etc.

 It is also learnt from CPPA’s application that out of total electricity produced in March 2022 from different sources of fuel, 16.35 per cent electricity was generated with hydel source, 24.83 per cent with coal, 10.62 per cent with expansive furnace oil, 9.53 per cent with local gas, while 18.87 per cent with LNG, and 15.01 per cent with nuclear source.

According to sources, if NEPRA approves CPPA’s application regarding Rs3.15 per unit power tariff hike, the power consumers of all power distribution companies (DISCOs) except K-Electric may bear an additional burden of approximately Rs26 billion.

Earlier, NEPRA raised the electricity rate by Rs4.85 per unit on account of fuel charges adjustment for the month of February 2022 for all DISCOs except K-Electric and issued a notification to this effect.

Pursuant to Section 31(7) of the NEPRA Act and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determinations of Ex-WAPDA Distribution Companies (DISCOs), the Authority may on monthly basis make adjustments in the approved tariff on account of any variations in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.

Meanwhile, NEPRA on Tuesday expressed serious reservations on the continued power load-shedding in the country while power distribution companies (DISCOs) complained against National Power Control Center (NPCC) for supplying less electricity.

Officials of DISCOs, including K-Electric, CPPA, and NPCC have attended the NEPRA’s hearing.

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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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