The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of around Rs 3.48 paise per unit for K-electric consumers ...
The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of around Rs 3.48 paise per unit for K-electric consumers in the fuel cost adjustment (FCA) for electricity consumed in July.
According to a maknews-21 report, Nepra did not decide on KE's second request for an increase of Rs 14.53 paise per unit under the April-June Quarterly Tariff Adjustment (QTA).
The burden of additional cost incurred under the uniform QTA tariff policy applied across the country is generally not passed on to consumers and is subsidized by the government, however, in The final decision is made by the federal government.
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Two separate public hearings on tariff changes were conducted by NEPRA Chairman Tauseef H Farooqui and members Rafiq A Shaikh and Maqsood Anwar Khan.
Nepra officials stated that the FCA for KE will be between Rs 3 63 paise and Rs 4 10 paise per unit on the request of reducing the fuel cost of electricity consumed by Rs 3 48 paise per unit in July.
Nepra says that final decision notification will be issued after detailed verification of fuel cost receipts and relevant parameters in this regard.
The decision to cut tariffs will reduce KE's revenue collection by more than Rs 6.5 billion in September.
Read more: Approval to increase the cost of electricity by Rs 4 34 paise per unit
Explaining the tariff reduction decision, it said that the reduction in KE's fuel cost adjustment compared to June is mainly due to the decline in global fuel prices.
The price of electricity purchased from the Central Power Purchasing Agency (CPPA) in July fell by 31% compared to June, while RLNG prices increased by 16% and furnace oil prices by 4% during the same period. happened
On the other hand, Nepra has approved an increase in FCA of Rs 4.34 paise per unit for all other electricity distribution companies, while CPPA has demanded an increase of Rs 4.69 paise per unit.
During the hearing, CPPA officials told Napera that they will challenge the Lahore High Court's decision against the recovery of FCA, which includes Rs 133 billion, without which the power companies would not supply electricity as usual. will be able to
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On behalf of former WAPDA discos, CPPA had in July sought an additional FCA of Rs 4.69 paise per unit to collect an additional Rs 65 billion due to high cost of electricity consumed.
The additional FCA requested for July is about 53% lower than June's record 990 paise per unit, due to cheaper domestic fuels, especially highly profitable hydropower generation and low-cost nuclear power. There is a substantial increase in the power output from
The largest share of generation in the overall power grid came from hydropower, which saw a significant increase in generation to 35 percent in July compared to 24 percent in June and May.
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It should be noted that electricity generated by hydropower does not use fuel, while less availability of expensive imported RLNG also proved to be a boon for consumers.
CPPA claimed that in July, consumers were charged Rs 6.29 paise per unit of fuel while the actual cost was Rs 10.98 paise per unit, hence an additional charge of around Rs 4.69 paise per unit. has been.
The additional electricity charges will be charged to all consumers in the next September bills after the notification is issued, the increase will not be applicable to consumers who consume less than 50 units per month.
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