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Business & Finance

NEPRA reduces electricity tariff

  • Actual fuel charges, as reported by CPPA-G, for the month of April 2021 decreased by Rs.0.8407/kWh as compared to the reference fuel charges
Published June 7, 2021

The National Electric Power Regulatory Authority (NEPRA) has slightly reduced the price of electricity in the context of fuel charge adjustment for the month of April.

NEPRA approved a reduction of 44 paisa per unit price of electricity in the context of monthly fuel charges adjustment for April 2021, stated a notification issued on Monday.

According to the notification, the authority has reviewed the information provided by CPPA-G seeking monthly fuel cost adjustment (FCA). "From perusal of the information so provided by CPPA-G, the actual pool fuel cost for the month of April 2021 is Rs.5.7680/kWh, against the reference fuel Cost component of Rs.6.6087/kWh."

The actual fuel charges, as reported by CPPA-G, for the month of April 2021 decreased by Rs.0.8407/kWh as compared to the reference fuel charges.

Nepra hints at refunding Rs4.4bn to consumers

The decrease of (Rs. 0.4371/kWh), shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming upto 300 units and agriculture consumers of all the DISCOs. It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

The Authority in its decision dated 01-12-2020 in the matter of Motion filed by the Ministry of Energy (Power Division) with respect to recommendations of Support Package for additional consumption and abolishment of Time of Use Tariff Scheme for Industrial Consumers of XWDISCOs, decided that:

The negative FCA would not be allowed to BI, B2, and B3 industrial consumers i.e. consumers paying Rs.8/kWh subsidized rate on incremental sales, from 1 St November 2020 to 30th June, 2021.

Similarly B4 consumers, who are paying Rs. 12.96/kwh for the incremental sales would also not be allowed the impact of negative monthly FCAs, till continuation of the instant package.

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 2021 by the XWDISCOs. XWDISCOs shall reflect the fuel charges adjustment in respect of April 2021 in the billing month of June 2021.

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