NEPRA notifies Rs1.06 per unit hike in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has notified Rs1.06 per unit hike in power tariff under the head ‘fuel cost adjustment’ (FCA) for the months of October and November 2020.

According to the notification, the FCA for October and November 2020 would be charged in the billing month of January 2021 to all consumer categories of power distributing companies (DISCOs), except lifeline consumers i.e. those having consumption up to 50 units. This FCA will not be applicable to K-Electric consumers.

NEPRA has approved an FCA of Rs0.2925 per unit (impact of Rs2.9 billion) for the month of October 2020, and FCA of Rs0.7696 per unit (impact of Rs5.5 billion) for the month of November 2020.

Earlier, the Central Power Purchasing Agency (CPPA) had requested NEPRA to approve an FCA of Rs0.5713 per unit for October 2020, and Rs0.9583 per unit for the month of November 2020. A hearing for both FCAs was held on December 30, 2020.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, (NEPRA Act) read with the mechanism/formula determined by the authority in the tariff determinations for Ex-WAPDA DISCOs for the FY2017-18 and notified in the official gazette, the authority has to make adjustments in the approved tariff on account of any variations in the fuel charges on a monthly basis.

On the date axed for hearing, representatives from CPPA-G, National Power Control Center (NPCC), National Transmission & Despatch Company (NTDC), DISCOs, media and general public were present; however, no representative from WAPDA Power Privatization Organization (WPPO), Sui Southern Gas Company Limited (SSGCL), Sui Northern Gas Pipelines Limited (SNGPL), Ministry of Energy and Ministry of Finance attended the hearing despite service of notice.

Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected]
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