Chairman Pakistan Industrial and Traders Association Front (PIAF), FaheemurRehmanSaigol criticizing the government’s decision to make another raise in electricity tariff has urged the National Electric Power Regulatory Authority (NEPRA) to reverse the proposed jump in power charges, as it has increased tariff of power Distribution Companies (DISCOS) by Rs3 per unit for Oct 2023 to recover Rs32 billion from consumers under monthly Fuel Charges Adjustment (FCA) mechanism.
In a statement issued here on Sunday, FaheemurRehmanSaigol said the government’s decision to increase the electricity tariff is anti-industry, and the PIAF strongly condemns the government’s move and calls on it to rescind it. He urged the power ministry to identify system constraints and communicate targets to all concerned departments in order to launch a wartime effort to upgrade the transmission system.
It was to be noted that the Authority conducted the hearing in the matter on November 29, 2023, wherein the data submitted by the CPPA-G came under scrutiny. According to reports, the Nepra reviewed the request by CPPA-G seeking monthly FCA and due diligence was done accordingly. From perusal of the information so provided by CPPA-G, the actual pool fuel cost for the month of October 2023, as claimed by CPPA-G, is Rs.11.4277/kWh, against the reference fuel cost component of Rs.7.8938/kWh. The actual fuel charges, as claimed by CPPA-G, for the month of October 2023 increased by Rs.3.5339/kWh as compared to the reference fuel charges. CPPA-G was directed to develop a proper mechanism for Inter DISCO settlement of FCA worked for each XWDISCOs and the FCA charged from consumers after consultation with DISCOS, in order to ensure proper accounting of energy and cost of each DISCO as per their own basket.
The NEPRA, after incorporating the adjustments, has reviewed and assessed a National Average Uniform increase of Rs.3.0786/kWh in the applicable tariff for Discos on account of variations in the fuel charges for the month of October 2023 i.e. Actual National Average Uniform Fuel Charge Component for October 2023 for Discos consumers was Rs10.9724 per unit against corresponding FCA of Rs7.9838 / kWh, showing a difference of Rs3.0786/ kWh.
The positive adjustment shall be applicable to all the consumer categories except Electric Vehicle Charging Stations and lifeline consumers. It shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of October 2023.
