July FCA: NEPRA allows Discos to increase tariff by Rs4.34 per unit in Sept. bills

July FCA

Islamabad: The National Electric Power Regulatory Authority (NEPRA) on Monday allowed the ex-WAPDA Distribution Companies (XWDISCOs) to increase power tariff by Rs4.34per unit in the wake of the July fuel cost adjustment (FCA).

According to a statement published by NEPRA, due to variations in the fuel charges for July 2022, the Central Power Purchasing Agency-Guarantee (CPPAG) sought an increase of Rs4.6954 per unit.

However, the Authority carefully reviewed the information provided by the CPPAG.

It found that the actual pool fuel cost for July 2022 was Rs10.6314/kWh, against the reference fuel cost component of Rs6.2879/kWh.

After a thorough assessment of the request made by the CPPAG, NEPRA allowed an increase of Rs4.3435 per unit.

NEPRA allows Discos Rs3.39 per unit hike under QTA

The statement further said that the fuel cost adjustments would be applicable to all except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

It further instructed that the Discos reflect the FCA separately in the consumers’ bills on the basis of units billed to the consumers in July 2022.

The collection would be made in the electricity bills in September.

With the implementation of the current increase, the government would collect an additional Rs69 billion in Sept 2022, including monthly fuel charges adjustment (FCA) plus 17% general sales tax (GST).

June FCA: NEPRA allows distribution companies to collect additional Rs 9.9/unit in Aug bills

Last week, NEPRA allowed power distribution companies (Discos) to hike power tariffs by Rs3.39 per unit under the Quarterly Tariff Adjustment (QTA) mechanism.

The regulator approved an Rs3.39 rate hike and ruled that it should go into effect on October 1 in order to replace the current QTA of Rs3.21 per unit for the third quarter (January – March).

Discos would see a delayed recovery as a result, while consumers would only be burdened with an additional 18 paise per unit in costs. For three months, from October to December, the revised QTA of Rs3.39 per unit would be in effect.

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