NEPRA slashes tariff by Rs0.19 for June

Reduction made on account of monthly fuel adjustment

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has approved reduction in tariff by Rs0.1930/kWh on account of monthly adjustment for month of June 2021.

The Central Power Agency Guarantee (CPPA-G) has requested positive FCA of 80.55 paisa per kWh, which would have an impact of Rs.11.2 billion.

The regulator held a public hearing on July 28, 202. Nepra approved negative fuel charge adjustment (FCA) of (Rs0.1930/kWh), which would have a benefit of Rs2.6 billion for the consumers.

The FCA of June 2021 shall be charged in the billing month of August 2021 to all consumer categories of XW-distribution companies, except life line consumers ie having consumption up-to 50 units, domestic consumers consuming up-to 300 units and agriculture consumers of all the XW-distribution companies.

It was clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. Further, industrial consumers availing ISP will not get the benefit of negative FCA on incremental sales only. They will, however, get the benefit of negative FCA on base tariff billed units.

This FCA would remain applicable only for one month. This FCA is not applicable to K-Electric consumers.

FCA for K-Electric

Nepra, vide its decision dated August 6, 2021, has issued its decision regarding K-Electric FCA for the months from January 2021 to June 2021.

In this regard, the hearing was held on August 3. The regulator approved the following FCA; it raised the tariff by Rs1.2505/kWh for January 2021, Rs2.0983/kWh for February and Rs1.9419/kWh for March. On other hand, it slashed the tariff by Rs0.5499/kWh for April, Rs0.9498/kWh for May and Rs0.1507/kWh for June.

The positive FCAs will be applicable to all the consumer categories except lifeline consumers and will be shown separately in the consumers’ bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains.

Similarly, in case of negative FCAs, the same shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units and agriculture consumers of K-Electric. Negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

Further, industrial consumers availing ISP will not get the benefit of negative FCA on incremental sales but they will get the benefit of negative FCA on base tariff billed units.

Published in The Express Tribune, August 7^th, 2021.

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