Consumers to Pay Rs1.46 in Electricity Bills in September 2023

Staff Report

Consumers are set to Pay Rs 1.46 extra in electricity bills in September 2023.

National Electric Power Regulatory Authority (Nepra) has made another increase in electricity prices by Rs 1.46 per unit on account of fuel adjustment for the month of July 2013.

In a notification, Nepra said that this adjustment has been made on account of variations in fuel charges, in accordance with Section 31(7) of the Regulation of Generation, Transmission, and Distribution of Electric Power Act, 1997, as amended through the Regulation of Generation, Transmission, and Distribution of Electric Power (Amendment) Act 2011. Check IESCO Bill Online| Download IESCO Duplicate Bill April 2023

According to Nepal’s official notification issued on Friday, the fuel charge adjustment for the Ex-WAPDA Distribution Companies (XWDISCOs) has been made keeping in view the actual price of electricity generated in July stood at Rs. 8.3565/kWh against the Corresponding Reference Fuel Charge Component of Rs. 6.8935/kWh.

It has made an increase for XWDISCOs Consumers by Rs. 1.4630/kWh.

Nepra said that this adjustment of Rs. 1.4630/kWh will be applicable to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

It will be clearly shown separately on consumers’ bills, based on the units consumed in July 2023. XWDISCOs are mandated to reflect this fuel charge adjustment in the billing for September 2023.

The notification also emphasizes that while implementing the Fuel Adjustment Charges, XWDISCOs must strictly comply with court orders, ensuring that the adjustment is carried out in accordance with the law.

This increase in electricity prices may impact consumers’ monthly bills and is a reflection of the ongoing fluctuations in fuel costs that are a significant factor in determining electricity tariffs.

Earlier, the power regulator had conducted a public hearing and indicated an increase of Rs 1.58 per unit related to the fuel charges adjustment (FCA) for the month of July 2023.

During a public hearing, the power sector regulator and various stakeholders expressed concerns about the inefficiency of electricity companies in the country.

One striking revelation during the hearing was related to the Sahiwal coal-fired power plant. Nepra had initially set the reference tariff for this plant at Rs 16 per unit, but it was revealed that the plant was claiming a price of Rs 27 per unit.