The National Electric Power Regulatory Authority (NEPRA) has concluded hearings on a request concerning Fuel Charges Adjustment (FCA) for energy consumed in March 2024, which might result in an increased financial burden of over Rs23 billion for power customers.
Even though the power distribution companies (DISCOs) have requested an FCA for March 2024, NEPRA has not yet made a decision on the matter. However, it is expected that the regulator will follow previous precedent and allow the collection of Rs23 billion from already burdened electricity consumers in the form of May 2024 electricity bills. As per NEPRA, the authority will present a comprehensive ruling following a close examination of the data and statistics.
Prior to this, the Central Power Purchasing Agency (CPPA) applied to the power regulatory body on behalf of DISCOs in order to raise the price of electricity by Rs2.9402 per kWh as part of the fuel costs adjustment for March 2024. NEPRA then scheduled a public hearing for April 26, 2024.
During the FCA hearing in March 2024, NEPRA Chairman Waseem Mukhtar saw a steady decline in the demand for power. The Sindh member of NEPRA brought up how consumers are switching to solar power since conventional energy is so expensive during the session.
Power users might have saved Rs58 crore if energy had been produced by the Guddu Combine Power Plant, according to NEPRA authorities. The Sindhi member of NEPRA responded by highlighting the volume of complaints the organization had received about power plant breaches of the economic merit order and giving the assurance that these issues were being investigated.
NEPRA was notified by representatives of the National Transmission and Dispatch Company (NTDC) that there was a 7% decline in the demand for power in March 2024.
