Electricity bills to surge with record fuel cost adjustment
In yet another blow to struggling electricity consumers, the Central Power Purchasing Agency (CPPA) has sought a massive Rs7.13 per unit increase in fuel charges in the upcoming bills on account of electricity consumed in January to generate an additional Rs57 billion for power distribution companies (Discos) formerly under Wapda. This is the highest-ever increase in fuel cost adjustment (FCA) demanded by the CPPA in history — almost 96pc higher than the pre-fixed fuel cost of Rs7.50 per unit already charged to consumers in January — and calls into question the capabilities of the power sector bureaucracy to forecast fuel costs even for six to seven months. This increase in FCA is on top of about 26pc increase in the annual base tariff and another 18pc hike under the quarterly tariff adjustment currently in place. As a result, consumers will have to pay excessive bills despite minimum consumption in peak winter months. The National Electric Power Regulatory Authority (Nepra) has accepted the request for a public hearing on Feb 23 (Friday).