Islamabad:
On Wednesday, the National Electric Power Regulatory Authority (NEPRA) asked on Wednesday of electricity distribution distribution companies (DISCO) to reimburse RS1.228 per unit to consumers in their invoices for the month of February 2025, due to the adjustments fuel monthly (FCA) for December 2024.
The decision was made on a petition from the Central Electricity Purchase Agency (CPPA), requesting authorization to reimburse RS1.0353 per unit. However, the NEPRA, after having held a public hearing on January 30, evaluated a uniform national decrease in RS1,23 per unit in the prices applicable for nightclubs.
This downward adjustment would apply to all categories of consumers, with the exception of living line consumers, national consumers consuming 300 units, electric vehicle charging stations (EVC), prepaid consumers in All categories and agricultural consumers of all XWDISCOS.
The regulator has also specified that negative adjustment due to the monthly FCA was also applicable to domestic consumers with meters of use (Tou), regardless of their level of consumption.
In its decision, the NEPRA also specified if the electricity bills for February 2025 had already been issued before the official notification of its last decision, the adjustment would be applied in the invoices of the month – March 2025.
Similarly, for K-Electric, the regulator approved a negative FCA of RS1,23 per unit for November 2024, which would be reflected in the invoices of February 2025. If invoices of February 2025 had been issued before the official notification, the ‘Adjustment would be applied the following month.
The FCA for K-Electric has been approved on a provisional basis and subject to an adjustment, once the NEPRA has finalized the multi-year price (MyT) of the utility for 2024-30. Any cost difference resulting from the determination of the myT would be incorporated into future adjustments, the regulator said.
The member of the member of NEPRA, the Mathar Niaz Rana rate in his additional note, said that the regulator had approved a negative FCA from RS1,23 per unit for the invoicing of K-Electric in November 2024, which was clearly Lower to the RS4.98 per kilowatt hour (kWh) requested by the utility.
The NEPRA determined that the real FCA of K-Electric should be negative RS5.00 per kWh, or 7.21 billion rupees cumulatively, but has cumulated 5.44 billion control rupees of RS8.7 billion costs linked Partially, open cycle operations, degradation curves of 8.7 billion and start-up costs within the framework of the K-Electric MyT.
Some officials have argued that the complete recovery of the FCA should be transmitted to consumers, as planned after the public hearing. The Nepra would later decide to adjust the amount retained from the front or to win it on the future determinations of the FCA.
Quarterly adjustment
Meanwhile, consumers should also benefit from another relief due to the reduction of RS2 per unit in power rate which amounts to 52 billion rupees, due to a second quarterly adjustment for the exercise in course.
After having held a public hearing chaired by the president of NEPRA, Waseem Mukhtar, the regulator hinted on Wednesday the management of Discos, including the K-Electric to reimburse more than 52 billion rupees to electricity consumers under the Second quarterly adjustment for the outgoing exercise.
During the hearing, the regulator examined the key elements of the adjustment, those responsible stressing that the large part of the proposed relief came from a reduction in capacity payments.
