The Pakistani government has requested policy guidelines from the National Power Regulatory Authority (Nepra) in order to transfer a significant amount of Rs 52 billion to consumers to cover fuel charges adjustments (FCAs) for June and July 2022. Based on Nepra’s determination, this amount will be calculated over a period of eight months beginning in October 2023 for the XWDISCOs and K-Electric.
The recovery of the Rs. 52 billion sum has already received approval from the federal cabinet, and Nepra has established FCAs of Rs. 9.8972 per unit and Rs. Consumers were expected to pay these sums in the billing months of August and September 2022.
The government has given the Power Division permission to recover the FCAs from customers as a result of pressure from the International Monetary Fund (IMF). With the cabinet’s approval, power consumers will bear the cost of Rs 52 billion.
The federal government is issuing guidelines to make adjustments to the approved tariff of XWDISCOs and K-Electric on account of fuel charge variations in order to assist in providing flood relief to a small group of domestic consumers.
To the extent of recovery, the following is being done: Domestic non-ToU (time of use) consumers who consume 200 units will only pay Rs3.8972 per unit FCA in the billing month of August 2022; the remaining FCA of Rs6 per unit will be recovered later.
Private agricultural consumers and non-ToU domestic (protected) consumers with 300 units of consumption will not pay any FCA in the August 2022 billing month; the full Rs9.8972 per unit FCA will be recovered later.
Non-ToU domestic consumers who consumed 300 units in July 2022 will not pay any FCA in the September 2022 billing month, with an amount of Rs4.3435 per unit FCA to be recovered subsequently.
Non-ToU domestic consumers of K-Electric with 300 units of consumption in July 2022 will not pay any FCA in the September 2022 billing month, with a total of Rs3.9738 per unit FCA (after passing on the negative FCA of 4.l 171 per unit for the month of July 2022 to consumers having a consumption of 300 units) to be recovered subsequently.
Nepra has been informed of the policy guidelines that the federal government has approved for the recovery of FCAs applicable to consumers for August and September 2022. The government wants to implement deferred FCA recovery as of March 1, 2023, and it has asked for a hearing opportunity so that it can make thorough submissions. This hearing request also includes a meeting with the authority’s technical professional team.
A public hearing will be held by Nepra on March 2, 2023. Customers across the nation have been impacted by tariff adjustments that will result in higher electricity bills in August and September 2022, as well as widespread flooding brought on by unusually heavy monsoon rains.
