Staff Report
ISLAMABAD: Power Distribution Companies (DISCOs) have submitted a request for a Rs 2.01 per unit increase in electricity tariff for the month of April 2023, while K-Electric has sought a higher hike of Rs 5.659 per unit.
The requests are made under the fuel charges adjustment (FCA) mechanism and include quarterly adjustments for the period of January to March 2023.
The National Electric Power Regulatory Authority (NEPRA) has scheduled separate hearings on May 31, 2023, to review and evaluate the proposed tariff adjustments for both DISCOs and K-Electric.
The Central Power Purchasing Agency (CPPA), acting on behalf of DISCOs, has applied to NEPRA for the approval of a Rs 2.0100 per kilowatt hour (kWh) increase in power tariff. According to CPPA’s application, a total of 10,010.30 giga watt hour (GWh) of energy was generated in April at a cost of Rs 10.2384/kWh. Out of this, 9,734.91 GWh was delivered to DISCOs at a cost of Rs 10.3975/kWh. The CPPA report provides detailed information on the energy production from various sources during April, including hydel, coal, RFO, gas, RLNG, nuclear, import from Iran, mixed sources, wind, bagasse, and solar.
K-Electric, on the other hand, has requested a positive FCA of Rs 0.489/kWh for the month of April, along with a separate request for a quarterly adjustment amounting to Rs 5.170/kWh for the period of January to March. These adjustments, if approved, will be applied to customers’ monthly bills.
The fuel charge adjustments (FCA) are necessary due to global variations in fuel prices used for electricity generation and changes in the generation mix. As per the power sector’s policies, these costs are passed on to customers for a single month, subject to NEPRA’s scrutiny and approval. It is worth noting that consumers also benefit when fuel costs decrease.
NEPRA has issued public hearing notices, inviting all interested and affected parties to raise any written or oral objections they may have during the hearings.
It is pertinent to mention that power consumers across the country should prepare for the potential additional burden, as NEPRA is likely to grant approval for the proposed adjustments in power prices for both DISCOs and K-Electric under the FCA for April 2023 and the quarterly adjustments.
