Nepra announces 85 paise per unit refund

Bringing an ongoing bickering within the regulator to the public domain, the National Electric Power Regulatory Authority (Nepra) on Thursday announced an 85 paise per unit negative fuel cost adjustment (FCA) for electricity sold to consumers of power distribution companies (Discos) in August at a higher rate. The decision, reached by a majority vote of 4:1, followed an unprecedented month-long delay after a public hearing on Sept 26. However, the division within the five-member Nepra board has exposed unknown inefficiency costs, flagged by both the tariff and technical members of Nepra — each responsible for critical financial and technical aspects of the power sector. The negative FCAs during the current fiscal year come primarily due to a 20 per cent increase in base tariff, effective from July 1, 2024, to June 30, 2025.