National Electric Power Regulatory Authority (Nepra) has reduced the tariff by 21 paisa per unit on account of fuel cost adjustment for the month of June 2021 and also approved to reduce per unit cost of electricity by Rs 0.07 on account of fuel adjustment for the third quarter of the fiscal year 2020-21. This new tariff will apply from October 1, 2021 and will remain in place for one year.
In a hearing on Wednesday, the NEPRA has finalized the reduction of 21 paise per unit in electricity charges for ex-WAPDA distribution companies for a month under the monthly fuel cost adjustment.
In the hearing, presided by the Chairman, NEPRA did not agree to Rs 13.4 billion worth of three-year-old adjustments on the basis of which the distribution companies asked for 80 paise per unit enhancement in the monthly fuel cost adjustment.
NEPRA said that the lower fuel cost would be adjusted in consumer bills in the month of August and will cause approximately Rs 3 billion negative revenues to the companies.
These rates would not be applicable for the consumers of K-Electric or agriculture and residential consumers of distribution companies, consuming up to 50 units per month.
The Central Power Purchasing Agency (CCPA) had requested the NEPRA to allow about 80 paisa additional charges for electricity consumption in June 2021 under fuel cost adjustment.
In a reply to a question by NEPRA, the Chief Executive Officer of CPPA, Muhammad Rehan answered that about Rs 13.38 billion claims had been made been on account of previous adjustments.
He added that the lower adjustment of Rs 11.65 billion would be made part of the quarterly tariff adjustment at a later stage.
The CPPA said that Rs 5.93 per unit were charged from the consumers in June on account of fuel cost whereas the actual amount comes to Rs 6.74 per unit.