ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday decided to reduce fuel cost adjustment (FCA) for the consumers of K-Electric by Rs7.43 per unit for one month, but increased its base tariff for three months by Rs3.30 per unit to reduce government subsidy.

On the other hand, the regulator allowed an increase of about 19 paise per unit for the consumers of ex-Wapda distribution companies (Discos) under monthly fuel price adjustment and notified Rs3.60 per unit discount for farmers under the government’s Kissan package.

During a public hearing, Nepra said the Central Power Purchasing Agency had sought an increase of Rs0.1938 per unit under monthly fuel cost adjustment for the month of November. However, after scrutiny of data and evidence, the regulator allowed an increase of Rs0.1857 per unit.

In a separate hearing, the regulator said K-Electric had sought a reduction of Rs7 per unit in tariff under FCA, but based on evidence it calculated the reduction of 7.43 per unit, resulting in Rs10 billion relief for KE consumers on account of fuel cost adjustment for the month of November 2022.

It was reported that lower FCAs had resulted because of a decline in prices of gas by six per cent, RLNG by 22pc and furnace oil by 16pc compared to the rates in September. KE officials said they did not utilise furnace oil for power generation in November in order to stabilise the system.

It was reported that two units of KE’s Bin Qasim plant were currently generating 750MW and the generation would touch 900MW in a few days and hence there would be no shortage of electricity in the upcoming summer after full commissioning of the plant.

The regulator directed KE to submit plan for reducing electricity generation cost within a week’s time. Both FCAs for KE and Discos would be made part of the coming billing month — January.

Kissan package

Nepra notified a Rs3.60 per unit reduction in power supply rates to private agricultural consumers under the Kissan package. It said the Economic Coordination Committee (ECC) of the cabinet had on Nov 29 approved this reduction which was duly ratified by the federal cabinet on Nov 30.

Under the decision, private agricultural consumers of all Discos and K-Electric would be provided a relief of Rs3.60/kWh in their current base rate of Rs16.80/kWh applicable under the July 25, 2022 notification. However, FCAs, QTAs and taxes and duties would be paid by the consumers as usual.

The ECC also approved additional supplementary grant of Rs28bn with effect from Nov 1, 2022 and its release to the power division for implementation of the PM’s Kissan package.

Published in Dawn, December 28th, 2022