Fuel cost adjustment of Rs3.5 more per unit to further inflate bills
The Central Power Purchasing Agency (CPPA) on Monday sought a massive Rs3.55 per unit as fuel cost adjustment (FCA) for ex-Wapda distribution companies (Discos) to raise another Rs33bn from consumers in December, despite a healthy 76 per cent electricity generation from cheaper domestic fuels. This comes on top of about 26pc increase in the annual base tariff and around 18pc hike under the currently implemented quarterly tariff adjustment (QTA). This means that consumers would benefit little from low consumption in December, as they would be charged such a big FCA amount on the relatively higher number of units consumed in October. This is mainly due to the CPPA claiming over Rs28bn for some past adjustments, resulting in an additional cost of Rs2.95 per unit, instead of just 59 paise for the generation cost in October. In a petition filed before the National Electric Power Regulatory Authority (Nepra), the CPPA acting as commercial agent of the Discos demanded an additional FCA of Rs3.54 per unit in billing month of December for electricity consumed in October. Nepra has accepted the petition and scheduled public hearings on November 29.