Consumers Likely to Face Rs 5.6 Per Unit Increase in Electricity Bills
Staff Report
Consumers are likely to face a Rs 5.6 per unit increase in electricity bills in February 2024.
The National Electric Power Regulatory Authority (NEPRA) has reserved its decision regarding the request from power distribution companies (DISCOs) to increase the electricity price by Rs 5.6194 per unit for fuel charges adjustment (FCA) in December 2023.Check IESCO Bill Online| Download IESCO Duplicate Bill April 2023
Earlier, the Central Power Purchasing Agency (CPPA) applied NEPRA, at the request of DISCOs, seeking an increase in electricity prices for December 2023 under the Fuel Charges Adjustment (FCA).
NEPRA conducted a public hearing on January 31, 2023 (Wednesday) primarily to address the FCA for December.
In its application, the CPPA claimed that the reference fuel cost for December 2023 was set at Rs 5.403 per unit, but the actual fuel cost came in at Rs 11.022 per unit. How to Pay MEPCO Bill Online?
The CPPA also stated that the total electricity generated with various fuels in December was recorded at 97,726 GWh, for Rs 10.1341 per unit, with a total cost of energy amounting to Rs 78,296 million.
During the hearing, Member NEPRA Rafiq Sheikh inquired about the burden resulting from the violation of the merit order and system constraints.
He questioned the duration of the current system, the existing plan, and the future of electricity sales. Addressing the ongoing problems since the creation of Pakistan, he sought clarification on the timeline for resolving these issues.
Member NEPRA Rafiq Shaikh emphasized the need for solutions and questioned how long these problems would persist.
He highlighted that electricity distribution problems were reported three times this month, and either a clear solution should be provided, or the overbilling issue of electricity companies would be finalized by March.
Member NEPRA Mothar Niaz Rana mentioned that nuclear power generation was lower due to the refueling of nuclear fuel.
Meanwhile, the CPPA sought retroactive adjustments of over Rs 5 billion, with NEPRA officials assuring that faulty meters would be replaced by February.
Electricity Generation Breakdown for December 2023:
| Source | Generation (GWh) | Percentage of Total | Cost per Unit (Rs) |
|---|---|---|---|
| Hydel | 1,859 | 24.06% | 0 (Zero cost) |
| Coal-fired Power Plants | 1,694 | 21.92% | 29.5832 |
| Gas-based Power Plants | 826 | 10.69% | 14.6035 |
| Re-gasified Liquefied Natural Gas (RLNG) | 1,268 | 16.41% | 33.250 |
| Bagasse | 101 | – | 5.9822 |
| Wind | 150 | 1.95% | – |
| Solar | 62 | 0.80% | – |
| Nuclear | 1,464 | 18.95% | 1.3162 |
| Imported from Iran | 28 | 0.37% | 33.1274 |
Notably, this represents the highest-ever increase in fuel cost adjustment (FCA) demanded by the CPPA.
If NEPRA approves the Rs 5.62 per unit hike in power tariff under FCA for December, consumers will pay the additional bill in February 2024.
NEPRA has reserved the decision on the electricity price increase, which will be issued after necessary scrutiny of the data.
It is important to mention that the increase in electricity price under FCA for December 2023 will not apply to lifeline electricity consumers and the consumers of K-Electric.
