ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has directed all state-run distribution companies and K-Electric to refund consumers Rs0.4812 per unit in November electricity bills, following a review of September’s Fuel Charges Adjustment (FCA) that revealed overbilling by power companies.
The refund will apply to all categories of consumers except lifeline, protected, EV charging, and prepaid users, Nepra said in its decision. The regulator found that discrepancies between actual and billed fuel costs led to excess charges in September.
In line with a federal Cabinet decision ratified on August 29, the FCA adjustment will now be applied uniformly across all utilities, including K-Electric. Any resulting shortfall will be covered through subsidies or cross-subsidies, ensuring parity in power tariffs nationwide.
However, Nepra Member (Technical) Rafique Ahmad Shaikh issued a strong dissenting note, criticizing the decision for “allowing inefficiencies to be passed on to consumers.” He pointed out that inefficient operations — including the Guddu 747MW plant’s partial load costs of Rs2.5 billion, Rs302 million in system losses, and the underutilized HVDC transmission line operating at just 41 percent capacity — continue to burden consumers.
Shaikh also objected to the dispatch of the Kapco plant in violation of the Economic Merit Order, which added Rs9 million to consumer costs, and highlighted that idle projects like Neelum Jhelum cause major financial losses that should not be shifted onto consumers.
He further warned against “regulatory leniency” that allows National Transmission and Despatch Company (NTDC) inefficiencies to persist, noting that transmission flaws have cost Rs126 billion since 2019, despite Rs570 billion in consumer-funded investments.
Story by Israr Khan
