NEPRA Approves Overnight Rs. 7.05 Increase in Electricity Fuel Cost Adjustment (FCA), Effective March 2024
The National Electric Power Regulatory Authority (NEPRA) has swiftly greenlit a significant Rs. 7.05 rise in fuel cost adjustment (FCA), slated to reflect in March 2024 electricity bills. This decision comes under strong pressure from the caretaker government.
Applicable to ex-WAPDA distribution companies (DISCOs) consumers for electricity consumed in January 2024, this hike burdens consumers with an additional Rs. 55 billion.
NEPRA’s move follows DISCOs’ previous demand for an FCA adjustment of Rs. 7.13 per unit, with NEPRA initially deferring any decision until an investigation was completed.
However, succumbing to caretaker government pressure, NEPRA proceeded with the surcharge without investigation, deferring the probe until after Ramazan while notifying the FCA revision late on Monday.
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The Rs. 7.05/kWh adjustment applies to all consumer categories except Electric Vehicle Charging Stations (EVCS) and Lifeline consumers. It will be separately indicated in consumers’ bills based on January 2024 consumption. XWDISCOS will include the fuel charges adjustment for January 2024 in the March 2024 billing.
This Rs. 7.05 per unit adjustment marks the highest FCA rate ever recorded, approximately 96 percent higher than the pre-set fuel cost in January bills.
This exacerbates high power bills, including a roughly 26 percent annual base tariff increase and elevated quarterly tariff adjustments.