Electricity bills set to soar as NEPRA approves FCA 

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has jacked up the power tariff by Rs 4.12 per unit on account of fuel charges adjustment (FCA) for the month of November 2023 and issued a notification in this regard.

According to NEPRA notification, the power sector’s regulatory authority has approved increase in the electricity price by Rs 4.1276 per kilowatt hour (kWh) under the head FCA of November 2023 and this hike in power tariff will be charged to power consumers during the month of January 2024.

As per the NEPRA notification, this increase shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers and the power consumers of K-Electric (KE). Similarly, this hike in power price shall be shown separately in the consumers' bills on the basis of units billed to the consumers in the month of November 2023. Likewise, power distribution companies (DISCOs) shall reflect the fuel charges adjustment in respect of November 2023 in the billing month of January 2024. While effecting the Fuel Adjustment Charges, the concerned DISCOs shall keep in view and strictly comply with the orders of the courts notwithstanding this order, said NEPRA notification.

According to sources, this hike in the power tariff will cause above Rs 30 billion worth additional burden on the already burdened power consumers. And, they will have to pay this heavy amount in the month of January 2024.

Earlier, the Central Power Purchasing Agency (CPPA), acting on behalf of the DISCOs, applied to NEPRA for an increase of Rs 4.66 per kilowatt hour (kWh) in the electricity price under the head Fuel Charges Adjustment (FCA) for the month of November 2023.

The CPPA’s application revealed that the total electricity generated from various fuels in the month of November was 7,547 GWh, at a cost of Rs 7.1704 per unit, resulting in a total energy cost of Rs 54,113 million. The data also indicated that the net electricity delivered to DISCOs in November 2023 was 7,288 GWh, at a rate of Rs 9.4448 per unit, with the total cost amounting to Rs 68,834 million.

According to CPPA’s data, electricity generated in November 2023 with hydel source constituted 36.50 percent, coal-fired plants 13.1pc, and gas-based plants 9.21%., nuclear 20.8%, RLNG 10.6%.

Central Power Purchasing Agency (CPPA) on behalf of DISCOs, sought an increase of Rs 4.66 paise in fuel price, and also placed a request for previous adjustments of Rs 15.9 billion to pass on to consumers in electricity bills in January 2024. The NEPRA authority, after conducting a public hearing, reserved its decision on the matter.

The power regulator-National Electric Power Regulatory Authority (NEPRA) faced vehement criticism during the public hearing for bowing to the pressure of power division to pass on the burden of electricity prices to the power consumers.

During the course of the public hearing, the NEPRA also questioned the CPPA for running power plants on imported fuel during the period under review while shutting down cheaper, domestically fueled plants for maintenance. The shutdown of the Thar coal-based plant for maintenance was highlighted as a contributor to higher electricity prices.

The regulator (NEPRA) also noted a 13 percent decline in electricity consumption and criticized the use of expensive liquefied natural gas (LNG) for power generation in November 2023, which caused higher electricity prices.