ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday notified about a 79 paise per unit additional fuel cost adjustment (FCA) in power tariff for ex-Wapda distribution companies (Discos) for one month to mop up about Rs4.5bn in additional funds in the current billing month.

“The adjustment, an increase of Rs0.7917/kWh, shall be applicable to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers,” Nepra stated in a notification, adding that the adjustment will be displayed separately on consumers’ bills based on the units billed in March 2023.

The ex-Wapda Discos had proposed an additional FCA of Rs1.17 per unit to generate approximately Rs9.5bn in additional funds for the billing month of May. According to the Discos, the actual pool fuel cost for the month of March 2023 was Rs9.88 per kWh, which included previous arrears claim of Rs13.385bn, having an impact of around Rs1.58 per kWh. This left an overall gap of Rs1.17 per unit against the reference fuel cost component of Rs8.71 per kWh.

The regulator, however, calculated a positive FCA of 79 paise per unit to yield about Rs4.5bn.

The increase in FCA in March was despite the fact that over 63pc of power generation in the national grid was from domestic cheaper fuels, and there was an unprecedented Rs7 increase in the base tariff along with the imposition of surcharges in recent months.

Under the tariff mechanism, changes in fuel costs are passed on to consumers on a monthly basis through an automatic mechanism. However, quarterly tariff adjustments, which account for variations in power purchase price, capacity charges, variable operation and maintenance costs, use of system charges, and the impact of transmission and distribution losses, are built in the base tariff by the federal government.

Published in Dawn, May 26th, 2023

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...