300 units consumption: Agriculture, domestic consumers to get benefit of FCA savings

ISLAMABAD: The government has decided to pass on the benefit of negative impact of Fuel Charges Adjustment (FCA) to agriculture consumers and domestic consumers using up to 300 units monthly.

According to Power Division, the ECC of the Cabinet on May 21, 2015 issued the following policy guidelines to “any negative adjustment on account of monthly FCA will not be passed on to the domestic consumers who have subsidized electricity tariff.”

The Authority in its FCA decision of June 24, 2015, decided the non-applicability of negative FCA to non-TOU domestic consumers up to 300 units. Further, the Authority’s decision for non-applicability of negative FCA to agriculture consumers is already in effect since November 2010.

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The Ministry of Energy, in its letter of June 9, 2021 has filed Policy Guidelines for re-targeting power subsidies in future. In line with the policy guidelines, the Authority in its decision of September 23, 2021, has created new domestic protected and non-protected non-TOU consumers’ categories.

Since then, the tariffs for the non-protected category have been increased gradually in line with the government policy.

Following the tariff rationalization, continuing the policy of not passing the negative FCA to non-protected domestic consumers and agriculture consumers may not corroborate with the principle behind earlier decisions.

The Power Division has requested Nepra to reconsider the non-applicability of negative FCA to non-protected domestic and agriculture categories.

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