ISLAMABAD: The Federal Government is all set to pass on another startling increase of Rs 3.50 per unit in tariff of Discos, under FCA from November 2019 to June, 2020, reportedly as a ‘prior’ condition of the International Monetary Fund (IMF). This increase will be in addition to FCA of January 2021 and recent increase of Rs 1.95 per unit in base tariff. A senior official in Power Division informed Business Recorder that section 31(7) of the Regulation of Generation, Transmission and Distribution of the Electric Power Act 1997 of NEPRA Act (read with the mechanism/formula determined by Nepra in the tariff determinations for Discos for the FY 2017-18) provides that Nepra may on a monthly basis and not later than a period of seven days, make adjustments in the approved tariff on account of any variations in the fuel charges and policy guidelines and the Federal Government may issue and notify the tariff so adjusted in the official Gazette.

The details of the actual fuel charges etc. for November 2019 to June 2020 were accordingly provided by Central Power Purchasing Agency Guarantee Limited (CPPA-G) to Nepra to make adjustments in the approved tariff of Discos due to variations in the fuel charges.

Nepra notified FCA for Nov-2019 to June-20 for passing on to consumers in two months (August & September 2020). The FCA rate in the billing month of Aug-2020 would be Rs.2.4228/kWh (for domestic consumers using up to 300 units per month & private agriculture) and Rs.1.1711/kWh.(other consumer categories). The EPA rate in the billing month of Sep-2020 would be Rs.2.8603/kWh (for domestic consumers using up to 300 units & private agricultural except lifeline consumers) and Rs.1.0982/kWh (other consumer categories).

"Any delay in charging of FCA would result in cash shortfall of around Rs.17 billion to the power sector," the sources added.

The Cabinet, earlier on, had directed to keep electricity prices unchanged till June 2020; and re-affirmed its earlier decision that prices of electricity will remain unchanged till June 2020.

Power Division has requested the ECC to approve the following: (i) passing on FCA to the end consumers as per guidelines provided in Nepra FCA decision of August 07, 2020. The FCA applicable in month of Aug-2020 to be billed in the billing month of Mar-2021; and (ii) FCA applicable in month of Sept-2020 to be billed in the billing month of April 2021.

Copyright Business Recorder, 2021