Power consumers to pay additional Rs 14.24/unit

ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) has allowed the power distribution companies (DISCOS) and K-Electric (KE) to recover a deferred fuel adjustment surcharge up to Rs 14.24 per unit from the electricity consumers in eight months from March to October 2023.

The regulatory authority has also allowed the K-Electric to recover deferred fuel adjustment charges from its consumers as well. For Karachi locals the surcharge would be up to Rs 13.87 per unit. 

The charges will be separate for each slab of consumers based on their consumption. 

As per details, the power companies will recover Rs 10.34 per unit from domestic protected consumers using 200 units or less per month, Rs 14.24 per unit from non-protected consumers using up to 200 units, Rs 14.24 per unit from those consuming 200-300 units per month and Rs 9.90 per unit from private agricultural consumers.

Whereas the breakdown for consumers in Karachi is as follows, Rs 9.97 per unit will be charged from domestic protect consumers using less than 200 units per month, Rs 13.87 per unit from non-protected consumers using up to 200 units, Rs 13.87 per unit from those consuming between 200 to 300 units per month and Rs 9.90 per unit from private agricultural consumers.

The entire amount will be recovered from the electricity consumers in instalments from March up till October 2023.

The government was to pass on this fuel adjustment which was to be originally charged in the months of June and July last year. However, prime minister Shahbaz Sharif had announced to defer it. 

According to the decision of NEPRA, the ministry of energy while justifying its request submitted that rebasing of uniform tariff determined by the regulator which was recommended by it as final tariff for publication in the official gazette was notified by the Federal Government in order to not burden the consumers disproportionately in a sequence of Rs.3.5/unit in July 2022 and Rs 3.5/unit in August 2022. 

Consumers were hit by Rs 9.89 per unit of fuel charge adjustment (FCA) plus Rs.7 per unit of rebasing simultaneously in August 2022 billing. This was an average increase of Rs. 16.90 per unit over and above the July 2022 rates. 

These adjustments in tariff significantly increased the electricity bills for the months of August and September 2022. 

Moreover, the extensive flooding also affected consumers across the country. Under these difficult conditions the Prime Minister of Pakistan decided to stagger the recovery of DISCOs and K-Electric FCAs, which were to be charged in August and September 2022.

 However, the government had further deferred its implementation.

During the course of the hearing, the energy ministry reiterated its stance that the FCAs to be charged in August and September 2022 were deferred for some categories of consumers in order to provide relief, considering the revision in base tariff, and impact of floods. 

It highlighted that there was an average increase of Rs.16.90 per unit, over and above the July 2022 rates as the above adjustments in tariff significantly increased the electricity bills for the months of August and September 2022.

 Present on the occasion of NEPRA’s hearing, the consumers had strongly opposed the recovery of the deferred surcharge from them and requested the power regulator not to burden them with such higher increase in electricity raise.