Islamabad: The National Electricity Regulatory Authority on Tuesday approved a Rs 3.99 per unit increase in the electricity tariff under the Fuel Adjustment Charge (a system designed to adjust monthly electricity charges based on fluctuations in fuel prices) for the month of April.
“According to the examination of preliminary data, Rs3 99 paisa becomes the electricity tariff under the fuel adjustment fee for the month of April,” Nebra said while chairing a public hearing on the Central Energy Purchasing Agency’s request for Rs 4.5 per unit increase in power. tariff.
The decision comes after the government announced on May 26 a gasoline price increase of 30 rupees per liter in order to meet the bailout conditions of the International Monetary Funds, as the country seeks a year extension in the loan program and wants to expand it by as much. 2 billion dollars. The International Monetary Fund will provide $3 billion. I expect the IMF to agree to increase it to $5 billion. Addressing a news conference on May 28, he said, if not $5 billion, we’d have $4 billion.
The decision will be made later in which month it will be adjusted. The plenary session was chaired by Nebra President Tosef Farooqi. Also attended were members of the authority Rafiq Ahmed Sheikh and Maqsood Anwar Khan.
Tuesday’s decision will not apply to K-Electric consumers. Nebra had earlier agreed to a Rs 4.83 per unit increase in K-Electric’s energy tariff on account of the March 2022 fuel cost adjustment against KE’s demand of Rs 5.27 per unit increase.
Last month, 12.55 billion per unit of electricity was produced. The approximate cost of energy production was 133 billion rupees. Rs 27 per unit of electricity was produced through diesel and Rs 28 per unit of electricity through furnace oil, Rs 16 per unit of electricity through LNG, and Rs 14 per unit via coal. The California Consumer Privacy Protection Act (CCPA) enforcement said energy losses were Rs 31 per unit.
The approval of a Rs 4.5 per unit electricity tariff increase would have imposed an additional burden of approximately Rs 59.45 billion on energy consumers.
Nebra officials said the gas produced 10.78 percent less electricity in April, adding that the shortage was overcome by using furnace oil. The price of kiln oil and coal has risen in the international market.
They said Engro Power had yet to be restored after the power plant’s belt was broken.
Rafiq Sheikh, a member of Nebra Sindh, said 33 gas-fired stations top the merit ranking and questioned such statistics given the gas shortage for more than two years.
Nebra called for improving the merit ranking list.
Earlier, 8.26 Baizas per unit was charged to the consumer under the March FAC for a month. The authority said the FCA will be charged in April at Rs 1.13 in June as compared to March, adding that the implementation of such a decision would be applicable for one month. The decision will apply to all consumers of distribution companies except for Lifeline consumers.
Nebra will issue its detailed decision after further examination of the preliminary data. Consumers will face an additional burden of over 51 billion rupees for one month.
How much does a fuel modification cost?
Fuel Adjustment Charge is a system designed to adjust monthly electricity charges based on fluctuations in fuel prices, which change with the rate of the global oil market. Power companies in Pakistan are supplied with fuel imported by the government and Nebra sets the electricity tariff. **
The higher the price of oil, the more fuel cost adjustment fee will be charged, and the lower the price of fuel, the lower its price. In the previous PML-N government, the Fuel Adjustment Charge (FCA) was sometimes negative due to lower oil prices.
Since oil prices are volatile, energy companies are required to charge a set amount for power generation at the beginning of the month. Towards the end of the month, companies begin preparing petitions to recover the difference caused by the change in oil prices. The difference is the adjustment to the price of fuel recovered from consumers in subsequent months. In the end, the consumer is the only payer for electricity and its charges.
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