Another hike awaits electricity consumers in August bills

A day after notifying a massive increase in basic electricity prices, the power regulator on Wednesday allowed K-Electric and other distribution companies (Discos) to charge an additional Rs29 billion from their consumers at the rate of Rs2.31 and Rs1.81 per unit, respectively, as monthly fuel cost adjustment (FCA). The consumers would be charged this extra amount in their August bills for the electricity they used in June. The decision was taken at two separate public hearings presided over by Tauseef H. Farooqui, the chairman of the National Electric Power Regulatory Authority (Nepra). In its petition, Karachi’s power utility sought Rs2.34 per unit FCA to recover an additional Rs4.4bn. However, Nepra approved an increase of Rs2.31 per unit. Likewise, Discos demanded Rs1.885 per unit additional FCA to tap Rs25bn, but the regulator approved Rs1.81. The additional costs have accrued despite over 58pc power generation from cheaper domestic fuels, which was slightly higher than 56pc in May and 54pc in April. The monthly adjustment costs have come even though the average base power tariff had gone up by more than Rs7 per unit and the cost of imported fuel like furnace oil and liquefied natural gas (LNG) dropped.