Nepra Approves Rs2.8 per Unit Surcharge in May Power Bills


The National Electric Power Regulatory Authority (Nepra) has sanctioned ex-Wapda power distribution companies (XWDISCOs) to levy an extra Rs2.8372 per unit on consumers’ May 2024 electricity bills.

This move, known as the monthly fuel cost adjustment (FCA), comes after power consumers paid less than the actual cost of power generation, particularly from costly imported fuel, in March. Nepra’s decision translates into an aggregate collection of over Rs25 billion from consumers.

In response to a petition from the Central Power Purchasing Agency (CPPA-G), representing XWDISCOs, Nepra’s decision excludes electric vehicle charging stations (EVCS) and lifeline consumers from the increased power price. The adjustment will be clearly delineated on bills based on May 2024 consumption.

During discussions, CPPA-G highlighted a 7.4 percent decrease in actual power generation until March 2024 compared to the reference tariff assumptions for FY2023-24. Domestic, commercial, industrial, and bulk power consumption also saw reductions, while Thar coal power plant utilization stood at around 48 percent due to system stability and demand considerations.

The financial implications of operating Guddu 747 on an open cycle, coupled with energy supply through net metering, were also discussed, shedding light on factors impacting power costs and consumption dynamics.

Earlier adjustments, such as the February 2024 FCA, had authorized an additional collection of Rs4.921 per unit in consumers’ April 2024 bills.

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