ISLAMABAD: For a change, the ex-Wapda distribution companies (Discos) on Thursday proposed a refund of Rs2.20 per unit overcharged to consumers in December under the fuel cost adjustment (FCA) involving a negative revenue adjustment of about Rs18 billion in February.

The National Electric Power Regulatory Authority (Nepra) has accepted the tariff petition and has called a public hearing on Jan 30 to see if the proposed reduction is justified in line with the monthly FCA mechanism.

On approval, the Discos would pass on about half (Rs9bn) of the amount they overcharged to consumers because of a mechanism in vogue that prohibits reduction in FCA to be passed on to domestic consumers of less than 300 units and agricultural consumers on the premise that they were already subsidised.

The FCA for Discos’ is now on the lower side compared to Rs8-9 per unit in previous months mainly because of an increase in nationwide uniform base tariff that has gone up by Rs7 per unit in July, the improved share of cheaper domestic fuels including inexpensive nuclear power. The total power generation from domestic fuels stood at about 67.3pc in December.

Published in Dawn, January 20th, 2023