Nepra Sanctions 86 Paisa Per Unit Refund in Electricity Bills
Consumers to Benefit from Rs10 Billion Relief Following CPPA-G Request for FCA Adjustment
The National Electric Power Regulatory Authority (Nepra) has sanctioned a negative adjustment of 86 paisa per unit in the Fuel Charges Adjustment (FCA) for Distribution Companies (Discos), leading to an estimated refund of around Rs10 billion to consumers for August 2024.
This action came in response to a request from the Central Power Purchasing Agency–Guaranteed (CPPA-G), which proposed a reduction of 55.75 paisa per unit for the consumption of 12,752 GWh of electricity, resulting in roughly Rs7 billion in refunds. Consumers can expect to see this relief reflected in their electricity bills for October 2024.
During discussions, Nepra members raised concerns about the tariff for bagasse-fired plants, noting discrepancies and expressing unease over the elevated rates that had been approved without sufficient consumer input. The tariff for bagasse increased dramatically from Rs5.98 per kWh in June to Rs12.48 per kWh in August, which alarmed consumers.
Nepra members stressed the importance of enhanced transparency and public involvement in the tariff-setting process, particularly regarding the contentious bagasse rates that have now surpassed local coal prices. They called for a comprehensive review of this tariff to address rising consumer concerns and ensure fair pricing practices.
This decision represents a significant move toward alleviating consumer complaints while also underscoring the ongoing challenges in the pricing mechanisms of the power sector.
Follow us on our social media platforms here: Twitter WHATSAPP CHANNEL FACEBOOK PAGE
