The National Electric Power Regulatory Authority (NEPRA) has slashed electricity rates for K Electric customers by Rs2.59 per unit under monthly Fuel Component Adjustment (FCA).
NEPRA in its notification states that the reduction in the price of electricity has been made in the context of the December 2021 fuel price adjustment.
The decision to reduce prices will provide a relief of Rs3.038 billion to Karachi residents in March bills, showed data provided by NEPRA.
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It may be recalled that K-Electric had filed the application for fuel price adjustment in December 2021, after which the hearing was held on February 2 at NEPRA Headquarters under the chairmanship of NEPRA Chairman Tauseef H. Farooqi.
The negative FCA of December 2021 shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units and agricultural consumers of K-Electric.
"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," read the notification.
The FCA shall be shown separately in the consumers' bills on the basis of units billed to the consumers in the respective month to which the adjustment pertains.
In case, the incremental industrial and winter incentive package becomes applicable in K-Electric, the amount of negative FCA allowed to such consumers would be adjusted in the subsequent adjustments of K-Electric, NEPRA added.
Just days ago, NEPRA increased tariff of power Distribution Companies (Discos) by Rs 3.10 per unit for December 2021, under monthly fuel cost adjustment (FCA) mechanism despite reservations by Member Sindh, Rafique Ahmad Shaikh.
The increase will be reflected in the billing month of February 2022 and will be applicable across the board; lifeline consumers are exempted from the impact of a raise in tariff for December 2021. Discos will recover over Rs 26 billion from the consumers as additional cost.