ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday decided to reduce fuel cost adjustment (FCA) for the consumers of K-Electric by Rs7.43 per unit for one month, but increased its base tariff for three months by Rs3.30 per unit to reduce government subsidy.

On the other hand, the regulator allowed an increase of about 19 paise per unit for the consumers of ex-Wapda distribution companies (Discos) under monthly fuel price adjustment and notified Rs3.60 per unit discount for farmers under the government’s Kissan package.

During a public hearing, Nepra said the Central Power Purchasing Agency had sought an increase of Rs0.1938 per unit under monthly fuel cost adjustment for the month of November. However, after scrutiny of data and evidence, the regulator allowed an increase of Rs0.1857 per unit.

In a separate hearing, the regulator said K-Electric had sought a reduction of Rs7 per unit in tariff under FCA, but based on evidence it calculated the reduction of 7.43 per unit, resulting in Rs10 billion relief for KE consumers on account of fuel cost adjustment for the month of November 2022.

It was reported that lower FCAs had resulted because of a decline in prices of gas by six per cent, RLNG by 22pc and furnace oil by 16pc compared to the rates in September. KE officials said they did not utilise furnace oil for power generation in November in order to stabilise the system.

It was reported that two units of KE’s Bin Qasim plant were currently generating 750MW and the generation would touch 900MW in a few days and hence there would be no shortage of electricity in the upcoming summer after full commissioning of the plant.

The regulator directed KE to submit plan for reducing electricity generation cost within a week’s time. Both FCAs for KE and Discos would be made part of the coming billing month — January.

Kissan package

Nepra notified a Rs3.60 per unit reduction in power supply rates to private agricultural consumers under the Kissan package. It said the Economic Coordination Committee (ECC) of the cabinet had on Nov 29 approved this reduction which was duly ratified by the federal cabinet on Nov 30.

Under the decision, private agricultural consumers of all Discos and K-Electric would be provided a relief of Rs3.60/kWh in their current base rate of Rs16.80/kWh applicable under the July 25, 2022 notification. However, FCAs, QTAs and taxes and duties would be paid by the consumers as usual.

The ECC also approved additional supplementary grant of Rs28bn with effect from Nov 1, 2022 and its release to the power division for implementation of the PM’s Kissan package.

Published in Dawn, December 28th, 2022

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

IMF’s projections
Updated 18 Apr, 2024

IMF’s projections

The problems are well-known and the country is aware of what is needed to stabilise the economy; the challenge is follow-through and implementation.
Hepatitis crisis
18 Apr, 2024

Hepatitis crisis

THE sheer scale of the crisis is staggering. A new WHO report flags Pakistan as the country with the highest number...
Never-ending suffering
18 Apr, 2024

Never-ending suffering

OVER the weekend, the world witnessed an intense spectacle when Iran launched its drone-and-missile barrage against...
Saudi FM’s visit
Updated 17 Apr, 2024

Saudi FM’s visit

The government of Shehbaz Sharif will have to manage a delicate balancing act with Pakistan’s traditional Saudi allies and its Iranian neighbours.
Dharna inquiry
17 Apr, 2024

Dharna inquiry

THE Supreme Court-sanctioned inquiry into the infamous Faizabad dharna of 2017 has turned out to be a damp squib. A...
Future energy
17 Apr, 2024

Future energy

PRIME MINISTER Shehbaz Sharif’s recent directive to the energy sector to curtail Pakistan’s staggering $27bn oil...