Nepra further increases tariff by Rs3.33/unit under FCA

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday announced an additional fuel cost adjustment (FCA) of Rs3.33 per unit for electricity consumed in May.

According to the regulator’s order, Nepra assessed a national average uniform increase of Rs3.3287/kWh in the applicable tariff for DISCOs due to variations in fuel charges for May 2024.

This adjustment of Rs3.3287/kWh will apply to all consumer categories except electric vehicle charging stations (EVCs) and lifeline consumers. The adjustment will appear separately in consumers’ bills based on units billed in May 2024 and will reflect in the billing month of July 2024, as stated in Nepra’s notification.

In addition, Nepra also announced a tariff reduction of Rs1.67 per unit for K-Electric consumers due to the fuel cost adjustment for April 2024. According to a separate notification, the authority decided to allow the negative FCA for April 2024 to be passed on to consumers in their July 2024 bills.

This negative adjustment will apply to all consumer categories except lifeline consumers, domestic consumers using up to 300 units, EV charging stations, and agriculture consumers of K-Electric.

It also applies to domestic consumers with Time of Use (ToU) meters regardless of their consumption level. The adjustment will be shown separately in consumers’ bills based on units billed in April 2024.

A day earlier, the federal cabinet approved a Rs5.72 per unit increase in the basic electricity tariff.

NEPRA made this decision for the fiscal year 2024-2025, with implementation set to begin on July 1, 2024. The average basic electricity tariff was approved to be raised from Rs 29.78 to Rs 35.50 per unit.

NEPRA’s report revealed that Pakistan’s power sector incurred a Rs403 billion loss in FY2022-23.

The progress report of power distribution companies, including K-Electric, indicated that nine distribution companies, including K-Electric, failed to achieve 100% recovery.

Line losses and low recoveries caused the Rs403 billion loss to the national treasury, as the companies did not purchase electricity according to their assigned quotas.