The National Electric Power Regulatory Authority (NEPRA) has asked distribution companies to refund an amount of Rs 25 billion they overcharged in September. The electricity unit will now be charged at Rs 2.19 per unit below the normal cost per unit. This relief will adjust the effect of cheaper fuel prices in the international market in the next billing cycle.
Agricultural consumers and domestic users who use 300 units or less a month, and K-Electric will not be eligible and their monthly bills will not be adjusted with this decrease.
A request was made earlier by the Central Power Purchasing Agency (CPPA) to NEPRA to reduce the price by Rs 0.07 per unit in order to adjust arrears. During the public hearing. which is usually held monthly, NEPRA rejected this proposal and did not adjust for the outstanding amount.
NEPRA said that the cost of electricity for distribution companies was Rs 4.05 during September, the reference price being Rs 6.36 per unit. CPPA requested a Rs 2.17 per unit adjustment with respect to the previous due amount, this request was refused by NEPRA.
Prices Increased By Rs 1.53 Per Unit
National Electric Regulatory Authority (Nepra) has determined an increase of Rs 1.53 per unit for electricity consumers for the year 2016-17 by allowing all the Discos with net revenue impact of Rs 115 billion, said a decision of the NEPRA released on Tuesday.
An increase of Rs 1.53 per unit would help all the Discos to collect overall revenue of Rs 154 billion while the Discos had already overcharged in the tune of Rs 39 billion from the consumers with a net impact of Rs 115 billion, an official from power sector elaborated.
Further elaborating net revenue impact, he said that an amount of Rs 59 billion under the head of Net Hydel Profit, Rs 49 billion under the head of fewer recoveries and Rs 55 billion under the head of Prior Year Adjustments would be recovered while the Discos had already overcharged Rs 39 billion from the consumers, which would now be returned.
It is pertinent to mention that NEPRA in its decision dated Sept 18, also determined an increase of Rs 0.48 per unit under the head of T & D losses and permanent defaulters.