Power companies allowed to extract another Rs8.4bn

The National Electric Power Regulatory Authority (Nepra) on Wednesday concluded that ex-Wapda distribution companies (Discos) and K-Electric would charge between 34 paise and Rs3.70 additional fuel cost, respectively, from their consumers for power consumed in March, under monthly fuel cost adjustment (FCA) mechanism. The decisions were made on the completion of two separate public hearings. The Discos and KE would together thus pass on a cumulative additional burden of about Rs8.4 billion on consumers across the country under the FCA in the current month’s bills. This would entail additional revenue of about Rs5.47bn to the KE and Rs2.95bn to Discos. The public hearings were presided over by Nepra Chairman Tauseef H. Farooqui and attended by all four provincial members — Rafique Sheikh, Maqsood Anwar, Muthar Rana and Amina Ahmed. Nepra’s case officers said that K-Electric had sought an FCA increase of about Rs4.49 per unit for March consumption, involving a financial gain of about Rs6.4bn. After minor adjustments, Nepra worked out the FCA increase at Rs3.70 per unit to provide Rs5.47bn additional finances to KE.