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.