May FCA: NEPRA approves hike of Rs7.9/unit
- Reason for proposed increase in FCA, according to CPPA-G, was higher generation from expensive fuels and previous adjustments
The National Electric Power Regulator Authority (NEPRA) on Monday approved an increase of Rs7.9 per unit in the tariff of ex-Wapda distribution companies for the month of May under the monthly Fuel Charges Adjustment (FCA) mechanism, reported Aaj News.
NEPRA held a public hearing today on Central Power Purchasing Agency-Guaranteed's (CPPA-G) request of adjustment in Discos’ tariff. The meeting was aimed at allowing the general public and other stakeholders to seek clarifications from the regulator and power utility prior to reaching any final conclusion on tariff adjustment request.
Last week, CPPA-G sought an increase of Rs8 per unit in Discos’ tariffs for May 2022 under the monthly, showing a 134% increase in generation cost to Rs13.8969 per unit from reference cost of Rs5.9322 per unit.
The main reason for the proposed increase in FCA, according to CPPA-G, was higher generation from expensive fuels and previous adjustments. The impact of approved increase will be passed on all categories of consumers of Discos except lifeline consumers.
It will also affect K-Electric (KE) consumers to the extent of 1,100 MW being purchased from the national grid.
Just days ago, NEPRA approved an increase of Rs5.27 per unit in tariff of K-Electric (KE) for April 2022 under monthly FCA mechanism, with a financial impact of Rs10.157 billion, to be recovered in bills of July 2022. The FCA shall be applicable to all consumer categories except lifeline consumers. KE had sought an increase of Rs5.307 per unit, having an impact of Rs10.216 billion for April 2022.
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