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NEPRA approves 44 -paisa per unit reduction in electricity tariff

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ISLAMABAD: National Electric Power Regulatory (NEPRA) has approved 44 paisa per unit reduction in power tariff under monthly fuel adjustment for April 2021.

Under the monthly fuel adjustment mechanism, the Central Power Purchase Agency (CPPA-G) on behalf of X-WAPDA DISCOs had sought a reduction of 84 paisa per unit having an impact of Rs8.5 billion for the month of April.

NEPRA held a public hearing on June 2 into FCA for April, said a notification issued here Monday. However, the Authority approved a negative FCA of 44 paisa having a benefit of Rs4.4 billion for consumers. The Authority in its earlier FCA decisions for the months of August & October 2020 provisionally deducted Rs.7.5 billion on account of deviation from efficient merit order (EMO).

However, based on the information/data submitted by NPCC/NTDC, the Authority has reworked the aforementioned impact and has decided to allow Rs.4.4 billion out of the previously withheld amount. The same had been included in the FCA of April 2021, which resulted in a reduction in negative FCA to 44 paisa per unit.

“The FCA of April 2021 shall be charged in the billing month of June 2021 to all consumer categories of XWDISCOs, except lifeline consumers i.e. having consumption up to 50 units, domestic consumers consuming up to 300 units and Agriculture Consumers of all the XWDISCOs, “ said the notification.

It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. Further industrial consumers availing of the Industrial Support Programme (ISP) will not get the benefit of Negative FCA on incremental sales only.

According to the notification issued by NEPRA on April 7, the price of electricity had been increased by 64 paise per unit, which has been made in the matter of fuel charges adjustments for the month of February 2021. NEPRA reviewed the information provided by CPPA-G seeking monthly fuel cost adjustment (FCA) and due diligence is done accordingly.

From the perusal of the information provided by CPPA-G, the actual pool fuel cost for the month of February 2021 is Rs.4.7987/kWh, against the reference fuel Cost component of Rs.4.1414/kWh based on the fuel references of the notified consumer-end tariff of Ex-WAI’DA DISCOs for the FY 2017-18.

The actual fuel charges, as reported by CPPA-G, for the month of February 2021 increased by Rs.0.6573/kWh (Annex-I), compared to the reference fuel charges of Rs.4.1414/kWh as mentioned above.

According to the data submitted by CPPA-G, XWDISCOs purchased 13.3 GWh from Captive Power Plants (CPPs) during February 2021, for which CPPA-G provided actual details of energy purchased from these plants.

Although, the same as per the NEPRA approved mechanism, works out as Rs.62.6535 million and the same has been considered while determining the FCA of February 2021. The raise of Rs.0.6416/kWh shall be applicable to all the consumer categories except lifeline consumers of all the XWDISCOs.

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