Fuel price adjustment: Discos to reimburse Rs35b to consumers

KESC and Pesco consumers will not be able to derive any benefit.


Our Correspondent December 02, 2013
Discos to reimburse Rs35b to consumers. PHOTO: FILE

ISLAMABAD: The National Electronic Power Regulatory Authority (NEPRA) has ordered power distribution companies to reimburse Rs35 billion collected from July 2012 to May 2013 (10 months) on account of fuel price adjustment (FPA) to consumers.

A notification in this regard was issued by the authority on November 29 following which power companies would refund the amount collected to consumers through future monthly bills. However, consumers of KESC and Peshawar Electric Supply Company (Pesco) will not benefit.

Earlier on October 31, Nepra had approved a 35 paisa per unit average reduction in the power tariff for consumers of power distribution companies (Discos) that resulted in a Rs35 billion relief to consumers, after revisiting previous determinations from July 2012 to May 2013.

The reduced consumer tariff for July 2012 would be 86 paisa per unit; 58 paisa in August; 70 paisa in October; 85 paisa in November; 51 paisa in December; 87 paisa in January 2013; 42 paisa in February, Rs2.39 per unit in March, Rs2.52 per unit in April and 93 paisa per unit in May 2013.

The decision was taken at a public hearing of the Authority (on October 31) where officials of Discos were in attendance. But there was no representation of consumers’ rights bodies, which have allegedly pocketed substantial funding from donors under the guise of consumers. Likewise there was no representation from the Ministry of Water and Power, Ministry of Finance and Ministry of Law and Justice, which could have opposed the regulator’s decision.

During the hearing, Nepra officials revealed that Discos in accordance with notifications from the government, received Rs35 billion as Fuel Price Adjustments (FPAs) but collected them from consumers. This implies that Discos collected double the amount ie, Rs70 billion both from the government and the consumers.

Published in The Express Tribune, December 2nd, 2013.

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