Consumers to Face Rs1.61 Hike in Electricity Bills In June 2023

Consumers are likely to face an increase of Rs 1.61 per unit in their electricity bills in June 2023.

However, the bills for K-electric in June 2023 may decrease due to fuel adjustment.

The National Electric Power Regulatory Authority (Nepra) has indicated an increase in power tariff by Rs 1.61 per unit for consumers of ex-Wapda distribution companies (Discos) to account for fuel cost adjustment in April 2023. Check KE Duplicate Bill |K-Electric Duplicate Bill 2023

However, Nepra has indicated a reduction of Rs 0.05 per unit in power tariff for electricity consumed in April for consumers of K-Electric under the monthly fuel cost adjustment (FCA) mechanism. Check IESCO Bill Online| Download IESCO Duplicate Bill April 2023

Nepra conducted separate public hearings for the requests of Discos and KE.

As a result, Discos will collect an additional amount of Rs 15.63 billion from its consumers, while KE will refund approximately Rs 72 million to its consumers in the billing month of June.

Nepra also reviewed KE’s demand for a tariff increase of Rs 5.2 per unit, which would have a financial impact of Rs 30 billion, for the quarter ending on March 31. However, Nepra has reserved its judgment on this matter.

The case officers of Nepra stated during the hearings that the ex-Wapda Discos had proposed an additional FCA of Rs 2.01 per unit to generate approximately Rs 19.5 billion in additional funds for the billing month of June.

However, after calculation, Nepra determined a positive FCA of Rs 1.61 per unit, resulting in an additional revenue impact of about Rs 15.63 billion.

On the other hand, KE had requested a 49 paise per unit increase in FCA to collect Rs 740 million from consumers. However, Nepra determined a negative FCA of 0.48 per unit or Rs 72 million for KE.

Once notified, the changes in FCAs will be reflected in the consumers’ bills in the upcoming billing month of June.

The FCA is reviewed on a monthly basis as per the applicable tariff regime across the country and only applies to the consumers’ bills for one month.

It is applicable to all consumer categories except lifeline power consumers, domestic consumers consuming up to 300 units, agricultural consumers, and electric vehicle charging stations (EVCS).

The adjustment on account of monthly FCA also applies to domestic consumers with Time of Use (ToU) meters, regardless of their consumption level.

One of the main reasons for the FCA is the decrease in hydropower generation and the resulting increase in the share of imported LNG-based generation in the overall power supply, making it the highest contributor at 24 percent.

The Central Power Purchasing Agency (CPPA), on behalf of Discos, claimed that consumers were charged a reference fuel cost of Rs 8.39 per unit in April, but the actual cost turned out to be Rs 10.40 per unit, resulting in an additional charge of Rs 2.01 per unit.

KE stated in a statement that Nepra conducted a public hearing for the petition submitted by K-Electric regarding Fuel Charges Adjustments (FCA) for April 2023 and Quarterly Adjustments for January to March 2023.

A final decision will be formally notified according to the regulator’s procedures. As per existing laws and regulations, these charges are one-time and are expected to apply to only one monthly bill.

On the other hand, K-Electric had requested PKR 5.170 / kWh on account of Quarterly Adjustments for January to March, and the Authority will decide after proper verification and deliberation.

The impact of quarterly adjustments is usually not passed on to consumers under the uniform tariff policy applicable across the country.