Government-owned power distribution companies (Discos) are seeking an additional fuel cost adjustment (FCA) of Rs2.63 per unit to extract around Rs35 billion more from consumers for electricity consumed in June. Despite relying on cheaper local fuels for 75% of power supply, an increase in base tariffs and FCA is inevitable.
The Central Power Purchasing Agency (CPPA) has filed a petition for the FCA increase, attributing it to higher fuel costs from unexpected power production sources. This rise in costs is expected to burden consumers with excessive bills, especially during high consumption periods.
The proposed increase in FCA, on top of a 20% rise in annual base tariffs, has been accepted for a public hearing by the power regulator Nepra. The data shows shifts in power generation sources and variations in fuel costs from different sources, impacting the overall electricity bills for consumers.
With adjustments to be made in consumer bills for August, the impact of these changes will be felt by the public. It is essential for consumers to be aware of these developments in the power sector to make informed decisions regarding their energy consumption.
Published in Dawn, July 26th, 2024