A supplementary cost of up to Rs14.24 would be assessed to customers.
The premium will be recovered by the power companies in installments over the course of eight months.
ISLAMABAD: Electricity distribution companies (DISCOs) and K-Electric (KE) are now able to recoup the deferred fuel adjustment premium of up to Rs14.24 per unit from customers thanks to a decision by the National Electric Power Regulatory Authority (Nepra).
From March to October 2023, power companies will collect the premium over the course of eight months in installments.
They will recover Rs10.34 per unit from domestic consumers who are protected and use between 0 and 200 units per month, Rs14.24 per unit from consumers who are not protected and use between 0 and 200 units, Rs14.24 per unit from consumers who use between 201 and 300 units, and Rs9.90 per unit from consumers who are private farmers.
In the months of June and July 2022, the government was compelled to pass on the gasoline adjustment surcharge. But Shehbaz Sharif, the prime minister, postponed its collection.
The power sector regulator permitted the recovery of up to Rs13.87 per unit in fuel adjustment premium in the case of KE.
Protected domestic consumers using zero to 200 units per month would pay KE Rs9.97, unprotected consumers using zero to 200 units will pay KE Rs13.87, those using 201 to 300 units will pay KE Rs13.87, and private agricultural consumers will pay KE Rs9.90 per unit. The surcharge will be paid to KE between March and October 2023.
According to Nepra’s ruling, the Ministry of Energy argued in support of its request that the federal government had been informed of the rebasing of the uniform tariff, which Nepra had decided upon and recommended as a final tariff for publication in the official gazette, in order to avoid unduly burdening consumers in the sequence of Rs3.5 per unit in July 2022 and Rs3.5 per unit in August 2022.
The gasoline charge adjustment of Rs9.8972 per unit and the rebasing of Rs7 per unit in August 2022 bills both struck consumers at the same time. In comparison to rates in July 2022, there was an average increase of Rs16.90 per unit.
For August and September 2022, consumers’ electricity rates will have dramatically increased due to these tariff modifications.
Moreover, widespread flooding brought on by unusually heavy monsoon rains also had an impact on the nation’s electrical users. In such case, the prime minister made the decision to collect the fuel fee adjustments for KE and DISCO in August and September 2022, respectively.
The regulator held a public hearing in this regard. The fuel charge changes, which were scheduled to take effect in August and September 2022, were postponed for some categories of users in order to provide assistance in light of the base tariff review and the impact of floods, the energy ministry reaffirmed during the hearing.
It was noted that the price modifications dramatically increased electricity bills for August and September 2022, with an average rise of Rs16.90 per unit over and above July 2022 rates. Additionally, the massive flooding brought on by the unusually strong monsoon rains also had an impact on customers nationwide.
Electricity users vehemently opposed the recovery of postponed surcharge throughout the hearing and asked the regulator not to subject them to such a significant rise in electricity rates.
