Discos seek additional fuel cost adjustment of Rs2.63

In light of the recent increase in base tariffs, government-owned power distribution companies (Discos) have sought an additional fuel cost adjustment (FCA) of Rs2.63 per unit to extract about Rs35 billion more from consumers in the next billing cycle for the electricity consumed in June. The Central Power Purchasing Agency (CPPA), a subsidiary of the power division, has filed a formal petition before the regulator for an increase of Rs2.63 per kilowatt-hour (unit) over the reference tariff of Rs7.14 per unit already charged to consumers in June. This increase comes even though almost 75 per cent of the power supply was generated from cheaper local fuels, primarily renewables. This proposed increase in FCA is on top of an average 20pc increase in annual base tariff effective July 1. As a result, consumers would have to pay excessive bills amid high consumption in hot and humid temperatures. The power regulator Nepra has acce­pted the request for a public hearing on July 31. It said the CPPA had originally sought Rs2.10 per unit additional FCA but revised it to Rs2.63 per unit.