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ISLAMABAD: The government has reportedly decided to recover Fuel Cost Adjustment (FCA) from November 2019 to June 2020 in the bills of May and June 2021.

The sources said, section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act Nepra Act) read with the mechanism/formula determined by Nepra in the tariff determinations for Discos for the FY 2017-18 provides that, Nepra may on a monthly basis and

not later than a period of seven days, make adjustments in the approved tariff on account of any variations in the fuel charges and policy guidelines and the Federal Government may issue and notify the tariff so adjusted in the official Gazette

The details of the actual fuel charges etc. for the months of November 2019 to June 2020 were accordingly provided by Central Power Purchasing Agency Guarantee Limited (CPPA-G) to Nepra to make adjustments in the approved tariff of Discos due to variations in the fuel charges.

Nepra notified FCA for Nov-2019 to Jun-20 through decision of August 7, 2020 for passing on to consumers in two months (August & September 2020). The FCA rate in the billing month of Aug-2020 would be Rs 2.4228/kWh (for domestic consumer up to 300 consumption and private agriculture except life-line) and

Rs.1.1711/6Wh (other consumer categories).

The FCA rate in the billing month of Sep-2020 would be Rs.28603/kWh (for domestic consumer up to 300 consumption & private agricultural except life) and Rs.1.0982/kWh other consumer categories). Any delay in charging of FCA would result in cash shortfall of around Rs.17 billion to the power sector.

The ECC of the Cabinet in its decision on March 17, 2021 directed the Power Division to resubmit the proposal after consultation with the Finance Division. Accordingly, a meeting was held in Power Division on April 30, 2021 for consultation.

After detailed discussion, the meeting decided that the ECC may issue guidance/ advise to Nepra to charge the FCA in the months having negative expect FCA i.e. May and June 2021 so that the impact on consumers may be minimized.

Copyright Business Recorder, 2021

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