Yet another power hike as NEPRA notifies FCA for June

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a rise in electricity prices by up to Rs 2.31 per unit as fuel charge adjustment (FCA) for June 2023.

When the cost of electricity provided to the customers is higher than the amount they are charged in a particular month, power distribution companies (DISCOs) and K-Electric submit applications to the regulator seeking to recover the difference in the amount — known as the FCA — by charging consumers in a later month. 

NEPRA’s latest decision is the result of applications filed by the Central Power Purchasing Agency (CPPA) on behalf of DISCOs and KE. CPPA requested a Rs 1.88 per unit rise for consumers of DISCOs, whereas KE pleaded for a greater increase of Rs 2.34 per unit in its electricity rate as FCA for June 2023. After careful consideration, NEPRA approved a somewhat lower rise of Rs 1.81 per unit for DISCOs and a similar Rs 2.31 per unit increase for KE’s electricity consumers.

This hike in power tariffs will be reflected in consumers’ electricity bills for August 2023.

Though expected, NEPRA’s decision has alarmed consumers who are already dealing with rising energy expenses following the regulator’s notification of an increase of up to Rs 7.5 per unit in the uniform national tariff last month. With the exception of lifeline category and electric vehicle charging stations, the increase in power costs will affect all consumers of both DISCOs and KE.

It is important to note that, while implementing the FCA, NEPRA urged the different DISCOs and KE to strictly follow court rulings, regardless of the regulator’s decision.

The decision has reignited a debate regarding the economic ramifications for consumers, particularly in light of the rising cost of energy. The general population is concerned about the impact of the tariff rise on their household budgets, especially at a time when the economy is already facing issues and masses are already bearing the brunt of sky-rocketing inflation in the prices of essential commodities, petroleum products, and energy, etc.

Consumers will see the impact of this rate hike on their monthly expenses when their electricity bills arrive in the coming month. This development has once again emphasized the delicate balance between delivering reliable electricity services and guaranteeing widespread affordability.