Nepra Approves Rs7.0562 Per Unit Hike in Fuel Charge Adjustment for March, Excludes EV Charging Stations and Lifeline Consumers
Nepra approves Rs7 per unit hike for March. In a recent development, the National Electric Power Regulatory Authority (Nepra) has sanctioned a Rs7.0562 per unit increase in fuel charge adjustment for the month of March, as reported by The News on Tuesday. While this decision is expected to impact consumers financially, it is aimed at addressing challenges in the power sector.
The approval comes after careful consideration by Nepra, with the state-run power distribution companies now permitted to levy additional charges. This adjustment is projected to impose a financial burden of around Rs56 billion on consumers, potentially rising to nearly Rs66 billion when factoring in the 18% general sales tax (GST).
It’s important to note that this tariff increase applies to all consumer categories except electric vehicle charging stations (EVCS) and lifeline consumers. The central power purchasing agency (CPPA), representing the distribution companies, had initially sought Rs7.13 per unit in its petition to Nepra.
The decision follows earlier reports by media regarding requests from ex-Wapda distribution companies (XWDiscos) for Nepra’s approval for a Rs7.13 per unit hike. These requests were made due to challenges such as a significant decline in hydropower production and systemic constraints like the incapacity of the high voltage direct current (HVDC) transmission line.
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While concerns have been raised about the substantial increase in fuel costs, particularly Rs14.6206/kWh for January 2024, Nepra has taken strict notice of the matter. In response, the authority has decided to initiate an investigation under Section 27-A of the NEPRA Act to ascertain the reasons behind this significant fuel cost claimed by CPPA-G for January 2024.
Overall, Nepra’s decision aims to address challenges in the power sector while ensuring transparency and accountability. The investigation into fuel costs underscores the authority’s commitment to thoroughly examine issues affecting consumers and the power industry.
