NEPRA raises power tariff by over Rs 3/unit under FCA of April M Haris

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has increased the electricity price by Rs.3.3321 per kilowatt hour (kWh) due to the fuel charges adjustment (FCA) for April 2024.

This decision of power tariff hike will add an additional burden to power consumers of distribution companies (DISCOs) in their current month’s bills.

According to NEPRA’s notification, the adjustment of Rs.3.3321/kWh will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers, and K-Electric consumers. The adjustment will be shown separately in consumers’ bills based on units billed in April 2024, and DISCOs will reflect this adjustment in the billing month of June 2024.

“The said adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of April 2024. DISCOs shall reflect the fuel charges adjustment in respect of April 2024 in the billing month of June 2024, said NEPRA notification.

NEPRA has also directed DISCOs to comply with any court orders when charging the FCA from their consumers. Non-compliance with court orders will hold the concerned DISCO responsible for violating court directives.

Under Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, NEPRA is authorized to make and notify adjustments based on fuel charge variations in the approved tariff of DISCOs.

Previously, the Central Power Purchasing Agency (CPPA) had requested an increase of Rs.3.4883 per kWh under the FCA for April 2024. According to the CPPA, the total electricity generated with various fuels in April 2024 was 8,639 GWh at a cost of Rs.9.2086 per unit, amounting to Rs.79,556 million in total energy cost.

Power generation with hydel sources was 2,070 GWh (23.96%) at zero cost, while coal-fired power plants produced 902 GWh (local coal) for Rs.14,421 million. Gas-based power plants generated 975 GWh (11.28%) at Rs.13.2535 per unit, and Re-gasified Liquefied Natural Gas (RLNG) plants produced 2,157 GWh (24.97%) at Rs.22.1261 per unit.

Bagasse-based power production was 56 GWh at Rs.5.9822 per unit. Wind power generated 287 GWh (3.32%), and solar power produced 113 GWh (1.31%) of the total generation. Nuclear sources generated 2,043 GWh (23.64%) at Rs.1.5341 per unit, and electricity imported from Iran was 37 GWh (0.43%) at Rs.27.4484 per unit.

Data from the CPPA showed that net electricity delivered to DISCOs in April 2024 was 8,375 GWh (96.94%) at a rate of Rs.8.9801 per unit, totaling Rs.75,205 million.

It is pertinent to mention that this significant hike will add extra burden to electricity consumers already struggling with high energy costs. The increase of over Rs 3 per unit will make it even harder for households and businesses to manage rising utility expenses.