NEPRA Sets December FCA at Rs4.56 per Unit for Electricity Consumers

Sat Feb 03 2024
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ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has determined the fuel cost adjustment (FCA) charges for December at Rs4.56 per unit, following a request from the Central Power Purchasing Agency (CPPA) for an increase of Rs5.62.

The adjustment, applicable to bills in February, impacting electricity consumers across Pakistan except for lifeline consumers and those under K-Electric’s jurisdiction. Previously, the regulatory authority had decided that the electricity consumers should pay Rs4.12 per unit as FCA for the month of November as the power distribution companies (Discos) collected the amount through bills sent in January.

The current increase may seem incremental, but it adds to the financial strain on consumers already grappling with record-high inflation. Advocates for reducing energy prices argue that such a move would alleviate costs across various sectors and contribute to lowering retail prices.

The decision comes after an open hearing where NEPRA reviewed CPPA’s request, signaling a disagreement with the entity responsible for purchasing electricity from producers for distribution by power distribution companies (Discos).

In October, NEPRA fixed the FCA at Rs3.07 per unit, differing from CPPA’s proposal of Rs4.66 per unit. The FCA collections, totaling around Rs28 billion in October, reduced to Rs15 billion in November, followed by approximately Rs5.41 billion in December, marking a consistent decline.

 

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