Monday, May 29, 2023

Nepra permit to charge additional 3.64 per unit for 3 month

The National Electric Power Regulatory Authority (Nepra) has permitted K-Electric to charge its customers an additional cumulative cost of Rs3.64 per unit over three months (August-October) to increase revenue by about Rs5 billion.

On the other side, it has requested that ex-Wapda distribution firms (Discos) repay about 19 paise per unit to its customers through a negative adjustment in the current month’s bills, with a total effect of almost Rs2.6 billion.

The Ogra here on Friday announced both tariff changes due to monthly fuel cost adjustment (FCA) for six months in the case of K-Electric and one month for Discos.

The regulator allowed extra FCAs for three months based on certified data supplied by KE, public hearings, and cross-examinations. This includes an extra charge of Rs1.25 per unit for the electric usage in January, Rs2.1 per unit in February, and Rs1.94 per unit in March.

In contrast, it authorized a 55-paisa-per-unit cut for April, a 95-paisa-per-unit cut for May, and a 15-paisa-per-unit cut for June.

Given the FCA’s ups and downs every three months, the regulator combined a cut in one month with an increase in another to spread the monthly cost on customers. As a result, users would be charged an extra FCA of Rs1.1 per unit in August, Rs1.55 per unit in September, and Re1 per unit in October. The authorized cumulative price rise works out to roughly Rs3.64 per unit over three months.

Positive FCAs (tariff increases) would be applicable to all KE customer groups except lifeline consumers, according to the regulator, and would be reflected individually in the consumers’ bills based on the units invoiced to them in the month to which the adjustment relates.

Similarly, negative FCAs will apply to all consumer groups with the exception of lifeline customers, domestic consumers consuming up to 300 units, and agricultural KE users. The negative adjustment for monthly FCA is also applied to residential users using Time of Use (ToU) meters, regardless of user level.

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