Fuel adjustment surcharge for Discos on quarterly basis: amendment to Nepra Act likely

The government is likely to make amendment in National Electric Power Regulatory Authority (Nepra) Act through Finance Bill 2009-10 for passing on impact of fuel adjustment surcharge to power consumers on quarterly basis instead of monthly for Discos.
According to sources, Ministry of Water and Power has proposed the fuel calculation of adjustment on quarterly basis instead of monthly basis as it has been experienced over the last one year that Discos are not yet able to supply data on monthly fuel adjustment as a result monthly tariff adjustment delay is adversely affecting the government collections.
In order to streamline the procedure, the ministry has also discussed the matter with Chairman Nepra on May 13, 2009 who also supported the proposal of quarterly fuel adjustment surcharge for power distribution companies. The Finance Division has been requested that the proposed change in fuel adjustment surcharge for Discos may be made in Nepra's Act through Finance Bill for the year 2009-10.
The Cabinet while considering a summary of the Finance Division on June 11, 2008 on Revised Estimates 2007-08 and Budget Estimates 2008-09 inter alia decided that automatic determination of fuel adjustment surcharge would be calculated by Nepra on monthly basis in accordance with fluctuations in international oil prices. This mechanism was later made part of the Finance Bill 2008-09.