Nepra okays record fuel cost adjustment after govt ‘arm twisting’
Days after ordering a probe into the record fuel cost adjustment (FCA) demanded by distribution companies, the power regulator approved the hike, which will put an additional strain of Rs55 billion on electricity users. In a remarkable turnaround on its proclamations, the National Electric Power Regulatory Authority (Nepra) notified the additional fuel cost adjustment (FCA) of Rs7.06 per unit on Monday. The amount will be charged from consumers of ex-Wapda distribution companies (Discos) for electricity consumed in January. Last week, the Discos sought an FCA of Rs7.13. Astonished by the demand, the regulator announced an investigation and said no decision would be made until the probe was concluded. According to sources, the government warned the regulator that such a route would create cash flow problems for the discos and affect performance benchmarks committed to the International Monetary Fund (IMF) at a crucial time.