2 weeks Ago By Fawad Yousafzai
ISLAMABAD - The National Electric Power Regulatory Authority (NEPRA) on Thursday asked ex-WAPDA distribution companies (XWDISCOs) to refund Re0.8555 per unit, which it had overcharged from the consumers during the month of August 2024, to electricity consumers. In a petition submitted to NEPRA, on the behalf Ex- Wapda Discos (XWDiscos), the CPPA- G said that for the month of August the reference fuel charges from the consumers were Rs9.
3877 per unit, while the total cost per unit was Rs8.8122 per unit. The CPPA had requested NEPRA to allow distribution companies (DISCOs) to refund consumers Re0.
5755 per unit for overcharges reflected in their August 2024 bills. On September 26, the regulator held a public hearing on the petition of the Central Power Purchasing Agency (CPPA). However, the regulator after scrutiny of the data and making adjustments has ordered XWDiscos to refund Rs 0.
8555 per unit to consumers on account of fuel charges adjustments (FCA) for August 2024, said a decision issued by NEPRA here. Sindh Assembly passes resolution in favour of 26th Amendment Meanwhile, K-Electric has also informed NEPRA that it will refund Re0.16 per unit to consumers, which they have overcharged from their consumers on account of fuel charges for the month of September.
In a petition submitted with the regulator, the K-Electric has maintained that it will provide a relief of Rs 247 million to the consumers in their next month’s bills. NEPRA will conduct public hearing on the KE’s petition on October 31. In his additional note on the FCA decision, Member Tariff Mathar Niaz Rana expresses concerns over the significant rise in the bagasse-based tariff, which exceeded local coal prices, sparking widespread consumer criticism.
He highlighted that the bagasse tariff remained steady at Rs5.982 per kWh in June and July 2024 but sharply increased to Rs12.48 per kWh in August 2024, surpassing the local coal tariff, which rose more gradually from Rs11.
03 per kWh in June to Rs12.27 per kWh in August 2024. Youth killed after armed motorcyclists open fire on car Rana pointed out that this substantial increase occurred without adequate consumer participation, leading to dissatisfaction.
He referred to the Ministry of Energy’s earlier request to reconsider the bagasse tariff, which was dismissed on legal grounds, and argued that the ministry’s concerns, made in the public interest, should be reconsidered under the legal framework prior to the 2018 amendments to the NEPRA Act. Rana stressed that consumer involvement, as required by law, was missing in the decision-making process. He recommended excluding the bagasse-based tariff from the negative Fuel Cost Adjustment (FCA) of Rs1.
2628 and called for immediate corrective action, including a public hearing to transparently reassess the tariff. He warned that failure to address this issue could discourage future investment in bagasse-based generation and result in higher consumer tariffs. However, NEPRA other members, including the chairman, rebutted the Member (Tariff)’s claims regarding the rise in bagasse-based fuel costs, emphasizing that the increase from Rs5.
98 per unit in July to Rs12.48 per unit in August 2024 was a result of long-delayed adjustments and should not be compared to local coal tariffs. The chairman highlighted that local coal costs fluctuate monthly, while bagasse tariffs are reviewed annually, with a 5 percent indexation, significantly lower than inflation and exchange rate impacts.
Members further noted that comparing outdated provisional rates from 2015 to revised 2024 rates lacked context. Over FY2023-24, the average local coal tariff stood at Rs13.76 per unit, higher than the revised bagasse tariff.
Regarding the Ministry of Energy’s reconsideration request, members pointed out that the 2021 Amendment limits such requests to public sector licensees, making Member (Tariff)’s assertion of continuity invalid under current laws. The reduction in tariff will be applicable to all the consumer categories except lifeline consumers, domestic consumers using up to 300 units, agriculture consumers and Electric Vehicle Charging Stations (EVCS). It will also not applicable to pre-paid electricity consumers of all categories who opted for pre-paid tariff.
XWDISCOs shall reflect the fuel charges adjustment in respect of August 2024 in the billing month of October 2024, however, for consumers whose bills have already been issued, the adjustment shall be reflected in the billing month of November 2024. ‘NHA Sindh’s revenue target should be set at Rs25b for current financial year’ Tags: neppra xwdiscos refund.
