Distribution Companies to Collect Rs. 30 Billion Extra From Electricity Consumers in October

Ex-WAPDA Distribution Companies (DISCOs) have sought an increase of Rs. 1.83 per unit in fuel cost adjustment (FCA) to collect an additional Rs. 30 billion from consumers in October.

According to a national daily, DISCOs have filed a petition through the Central Power Purchasing Agency (CPPA) with the National Electric Power Regulatory Authority (NEPRA) for the FCA hike.

The power regulator has accepted the petition and scheduled public hearings on 27 September to ascertain whether the proposed tariff hike is justified.

The CPPA stated on behalf of the distribution companies that in August, users were charged a reference fuel cost of Rs. 6.65 per unit, while the actual cost was Rs. 8.47 per unit, implying that an additional hike of Rs. 1.83 per unit was necessary. With NEPRA’s approval, the hike would be reflected in consumer bills in the October billing month.

This comes despite the base average tariff going up by roughly Rs. 7.5 per unit as of July 1. Another Rs. 5.40 per unit quarterly tariff adjustment (QTA) worth Rs. 146 billion is on the way, as the regulator has concluded the public hearing procedure and may prolong its recovery over six months at a rate of Rs. 3.55 per unit.

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