Power firms seek to extract Rs35bn more from users

ISLAMABAD: Continuing with perpetual electricity price shocks suppressing demand, the Central Power Purchasing Agency (CPPA) has sought about Rs5 per unit increase in fuel cost adjustment (FCA) in upcoming bills on account of electricity consumed in February to generate another Rs35 billion for ex-Wapda Distribution Companies (Discos). The additional FCA demanded by the CPPA, 113pc higher than the pre-fixed fuel cost of Rs9.42 per unit already charged to consumers in February, calls into question the capabilities of the power sector bureaucracy to forecast fuel costs even for 6-7 months. The additional FCAs have remained over 80pc higher in recent months than the pre-determined fuel costs notified at the start of the current fiscal year. This increase in FCA is on top of about 26pc increase in annual base tariff and another 18pc hike under the quarterly tariff adjustment currently in place. As a result, the consumers would continue to pay excessive bills despite lower consumption while over 77pc share of electricity came from local cheaper resources.