The National Electric Power Regulatory Authority (Nepra) has increased electricity rates by Rs0.9573 per unit for the ongoing month in line with fuel adjustment charges and Rs1.0982 per unit for the next month, but the raise will not be implemented for lifeline consumers.
The delayed decision by the electric power regulator over calculating the Fuel Cost Adjustments (FCAs) has benefited consumers with limited increase in electricity tariffs for the months of August and September.
The regulator notified the adjustment in approved tariff on account of variations in fuel charges for eight months – from November 2019 to June 2020 – for all power distribution companies.
The calculations have been delayed partially due to the lockdown and limited working hours during the last several months in the wake of the Covid-19 pandemic.
According to the Nepra notification, fuel cost was high during December 2019 when the FCA was calculated at Rs1.8779 per unit. It was Rs1.1108 per unit in January 2020 and surged to Rs1.2051 per unit in February 2020.
A senior official of the regulatory body said that the notification of fuel adjustment from November 2019 to January 2020 was delayed deliberately to prevent extraordinary increase in electricity rates.
“It was expected that oil prices would drop in the international markets; therefore, the impact would eventually be less on consumers,” the official added.
The FCAs pertaining to January 2020, February 2020, March 2020 and May 2020 will be charged in the electricity bills for the month of August 2020 that is Rs0.9573 per unit.
While the fuel adjustment charges for the months of November 2019, December 2019, April 2020 and June 2020 will be charged in consumer bills of September 2020 which will be Rs1.0982 per unit.
The impact of the FCAs will be applicable for all consumer categories except for the lifeline ones.