Power tariff increased under fuel adjustment charges

ISLAMABAD: The power tariff has been increased by 95 paisa per unit for the current month and Rs1.09 per unit for the next month under fuel adjustment charges. However, the new tariff will not be applicable to lifeline consumers.

The National Electric Power Regulatory Authority (Nepra) has notified the changes in the approved tariff on account of variations in fuel charges for eight months — from November 2019 to June 2020 — for all power distribution companies.

The delayed decision by the electric power regulator over calculating the Fuel Cost Adjustments (FCA) has helped consumers, with only a limited increase in electricity tariffs for the months of August and September.

The calculations have been delayed partially due to deliberate efforts by the authorities concerned and due to the lockdown and limited working hours during past several months in the wake of Covid-19 pandemic.

The notification issued by Nepra showed that fuel cost was high during December 2019 when the FCA was calculated at Rs1.87 per unit, it was Rs1.11 per unit in January 2020 and surged to Rs1.2 per unit in February 2020.

A senior official of the regulatory body said that the notification for fuel adjustment from November 2019 to January 2020 was delayed deliberately to prevent extraordinary increase in electricity rates.

“It was expected that oil prices would drop in the international market; therefore, the impact would eventually be less on consumers,” the official added.

The FCA pertaining to January, February, March and May 2020 will be charged in electricity bills for the month of August that is Rs0.95 per unit.

The fuel adjustment charges for the months of November and December 2019 and April and June 2020 will be charged in consumer bills of September 2020 which will be Rs1.09 per unit.

The impact of FCAs will be applicable at all consumer categories except lifeline consumers.