ISLAMABAD – Nepra Wednesday notified Rs2.38 per unit fuel adjustment cost to be recovered from the consumers against the units they consumed in February and March.

The decision, corresponding to a period of time when entire country was facing worst-kind of loadshedding, would however not be applicable to Karachi Electric Supply Company (KESC) and life-line consumers.

Nepra (National Electric Power Regulatory Authority) issued a notification, in response to a petition filed by CPPA (Central Power Purchase Agency) for increase in power tariff, maintaining that CPPA requested the authority to increase power tariff by Rs0.59 for the month of February and Rs1.79 per unit for March against fuel consumption for power generation.

Nepra Vice Chairman Ghayasud Din chaired a hearing of the CPPA petition at the authority’s secretariat. Member Sindh Habibullaha Khilji and Member Khyber Pakhtunkhwa Shoukat Ali Kundi expressed deep concerns over the fuel cost derived by power generation companies. During the hearing, these members as well as small power producers opposed approval of revenue collection amounting to Rs1.09 billion in state of fuel adjustment against power generation. They expressed dismay over shifting of burden towards electricity consumers.

Shoukat Ali Kundi said that theft of Furnace Oil in GENCOs as reported by media has serious repercussions. Instead of taking any corrective measure, the entire burden of fuel cost has been shifted towards electricity consumers without any justification, he added. Nepra sources revealed that authority took the decision to keep Reference Fuel Cost (RFC) Rs6.49 per unit for February and Rs7.76 for March. It rejected CPPA request to shift the additional burden of fuel cost amounting to Rs697 million towards electricity consumers against fuel consumption on power generation by Rental Power Plants (RPPs).

CPPA maintained in the hearing that because of hike in the price of Furnace Oil in international as well as local market the power generation cost has also been increased, which caused for increase in electricity price in state of fuel adjustment, while hydel power generation remained low during certain period.

CPPA further added that power purchasing agency sold out more than 5.91 billion electricity units to power distribution companies in February and accumulated fuel cost against certain number of units for the said period was recorded Rs42.48 billion. Similarly, it said it sold out more than 6.22 billion units to power distribution companies in March and accumulated fuel cost against certain number of units for the said period was recorded Rs69.97 billion.