NEPRA concludes public hearing seeking hike in FCA

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Wednesday concluded public hearings into Fuel Cost Adjustment (FCA) of all power distribution companies (DISCOs) for August.

The hearings were presided over by NEPRA Chairman Waseem Mukhtar, Member (Licensing) Engr. Maqsood Anwar Khan, Member (Technical & Finance) Mathar Niaz Rana, and Member (Law) Ms Amina Ahmed.

The Central Power Purchasing Agency (CPPA-G) on behalf of DISCOs sought Rs 1.82 per unit increase in the power tariff for month of August.

As per the NEPRA calculation, the increase stood at 37 paisa in the tariff for DISCOs after adjustment. The hike will impose an additional burden of Rs33 billion on the consumers of the DISCOS.

The authority heard the petitioners and would decide the matter after due diligence and considering the comments of all stakeholders. The raise would be applicable to all consumers except lifeline consumers and Electric Vehicles charging stations.

The request for the hike mentioned that electricity companies were provided 15.472 billion units in the month of August. In the month of August, 4.07% of electricity was generated from expensive furnace oil at the cost of Rs 33.32 per unit.

The application further mentioned that around 7.60% percent electricity was generated from gas, 17.17% from imported LNG, 4.51% of electricity from coal, 10.26% from imported coal, and 12.79 percent of electricity was generated from nuclear fuel.

In August, the production cost of electricity was Rs 8.47 per unit.  The reference cost of electricity from NEPRA was fixed at Rs 6.64.