Govt to recover FCA deferred during floods

Distribution companies (DISCOs) across the country were on Friday allowed to recover fuel cost adjustment (FCA), which was deferred for two months because of the devastating floods last year, in eight monthly instalments from the current month.

According to a notification, the National Electric Power Regulatory Authority (Nepra) allowed DISCOs and K-Electric (KE) to recover the surcharge of up to Rs14.24 per unit from consumers in electricity bills from March till October, 2023.

The surcharge for the months of August and September was deferred by the energy ministry on the instructions of Prime Minister Shehbaz Sharif on account of the devastating floods that hit the country after the abnormally high rainfall last year.

According to the notification, the consumers in all categories – including domestic protected consumers, non-protected consumers, private agricultural consumers – would be charged up to Rs14.24 per unit in eight months.

The DISCOs will recover Rs10.34 per unit from domestic protected consumers, using up to 200 units per month; Rs14.24 from non-protected consumers using up to 200 units, Rs14.24 from users of 201 to 300 units and Rs9.90 from private agricultural consumers.

Similarly, the power regulator also allowed K-Electric to recover an amount of up to Rs13.87 per unit from its consumers during March-October 2023 period, including Rs9.97 per unit from domestic protected consumers, using zero to 200 units per month.

According to the notification, Rs13.87 would be recovered from non-protected consumers using zero to 200 units and those consuming 201 to 300 units per month, besides Rs9.90 from private agricultural consumers.

According to the Nepra decision, all DISCOs and K-Electric consumers would be charged Rs2.75, Rs2.75, Rs2.25, Rs0.95, Rs0.79, Rs1.50, Rs1.75 and Rs1.13 per unit during the coming eight months, respectively.

Besides, Nepra also issued a price increase of Rs0.48 per unit of electricity for DISCOs and Rs1.71 per unit for K-Electric on account of monthly fuel charges adjustment (FCA). This increase would be applied to the bills for the month of March.

Also, Nepra announced its ruling on a request from the Energy Minister for allowing the withdrawal of subsidy under the Kissan Package and five export-oriented sectors aimed at maintaining competitive rates, from March 1.

Nepra said that the energy ministry, in the light of federal cabinet decision on February 28, had taken back its central relief package of concessional rates of Rs19.99 per unit for five export-oriented sectors and Rs3.60 per unit for private agricultural consumers.

Since, any kind of subsidy to electricity consumers was the jurisdiction of the federal government, which had been withdrawn, therefore, these two reliefs had also been withdrawn on March 1, 2023, Nepra said.