NEPRA notifies power tariff hike by Rs 2.52/unit

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Staff Report

ISLAMABAD:

Already burdened power consumers would find additional burden as National Electric Power Regulatory Authority (NEPRA) has notified Rs 2.52 per unit hike in the price of power on account of fuel charges adjustment for the month of September 2021.

NEPRA on Tuesday issued a notification to this effect under which  the increase in power price by Rs 2.5272 per Kilo Whatt hour (kWh) shall be applicable to all the consumers categories except lifeline consumers of all the power distribution companies (DISCOs) except K-Electric and this increase will be charged from the power consumers in billing month of November, 2021.

According to sources, the Rs2.52 increase will put a burden of Rs40 billion on consumers.

As per details, actual fuel charge for September 2021 was at Rs 7.5502/kWh while corresponding reference fuel charges was fixed at Rs 5.0229/kWh and fuel price variation was Rs 2.5272/kWh.

According to the NEPRA notification, the said adjustment shall be shown separately in the consumer’s bills on the basis of units billed to the consumers in the month of September 2021 by the DISCOs. The DISCOs shall reflect the fuel charges adjustment in respect of September 2021 in the billing month of November, 2021, said NEPRA notification.

‘While effecting the fuel adjustment charges, the concerned XWDISCOs shall keep in view and strictly comply with the orders of the courts notwithstanding this order,” said notification.

Earlier, the Central Power Purchasing Agency-Guarantee (CPPA-G) had earlier requested a positive Fuel Charges Adjustment (FCA) of Rs2.65 per unit.

Meanwhile, the government has reduced power price cheaper under a special package for the on-going winter season, starting from 1st November 2021 to end on 28th February 2022.

According to NEPRA notification, the Authority (NEPRA) has no objection in approving the instant proposal regarding winter incentive package for residential, commercial and general services consumers of DlSCOs (as proposed by the Ministry of Energy.

As per details, the reference period for incremental consumption will be Nov. 2020 to Feb. 2021 and rate of Rs.12.96/kWh shall be charged to domestic consumers (Non-ToU) on the incremental consumption, above monthly 300 units or above the reference consumption in the corresponding months of reference period, whichever is greater. Similarly, rate of Rs.12.96/kWh shall be charged to commercial consumers (Non-ToU) and general services consumers on the incremental consumption above the reference consumption in the corresponding months of reference period. Likewise, rate of Rs.12.96fkWh shall be charged to domestic consumers (ToU) and commercial consumers (ToU) on the respective peak/off-peak incremental consumption, above the reference peak/off-peak consumption in the corresponding months of reference period. New and existing consumers having no reference consumption available in period of November 2020 to February 2021 shall be offered same package at the concessionary rate of Rs.12.96/kWh through benchmark consumption methodology. No quarterly adjustments would be applicable on incremental consumption. Furthermore, on incremental consumption, only positive fuel price adjustments shall be passed on to the consumers availing incremental consumption package.

 

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