Staff Report
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) successfully concluded the hearing process for the Fuel Charges Adjustment (FCA) of power distribution companies (DISCOs) and K-Electric for the month of April 2023.
The separate hearings, presided over by NEPRA Authority members, including Chairman Mr. Tauseef H. Farooqi, saw the participation of various stakeholders, such as DISCOs, CPPA, NTDC/NPCC, the business community, journalists, and the general public.
Upon a request from the Central Power Purchasing Agency (CPPA), an FCA of Rs. 2.01 per kilowatt hour (kWh) was proposed for DISCOs, reflecting the monthly Fuel Price Adjustment for April 2023. NEPRA’s preliminary calculations indicated a net FCA of Rs. 1.6076/kWh, which would have an estimated impact of approximately Rs. 15.626 billion.
NEPRA’s Authority has diligently considered the arguments presented by the petitioner and will render a decision after conducting thorough due diligence, taking into account the comments and feedback from all stakeholders involved in the matter.
Additionally, NEPRA concluded the hearing process for K-Electric’s FCA for April 2023 and the Quarterly Adjustment ending in March 2023. K-Electric requested an FCA of Rs. 0.489/kWh for the monthly Fuel Price Adjustment and a Quarterly adjustment of Rs. 5.170/kWh for the period from January to March 2023.
NEPRA stated that the net FCA for K-Electric in April 2023, as per preliminary calculations, is negative Rs. 0.0472/kWh, resulting in a relief of approximately Rs. 72 million. Regarding the quarterly adjustment, NEPRA will conduct further due diligence after scrutinizing the records and information provided by K-Electric.
It is worth mentioning that electricity consumers of DISCOs and K-Electric can expect additional payments in their next month’s bills due to the FCA. However, this hike will not be applicable to lifeline customers.
