The National Electric Power Regulatory Authority (NEPRA) has received a request from the federal government seeking permission to collect an extra Rs. 3.5 per unit in Fuel Cost Adjustment (FCA) for power used in April 2024.
In spite of the fact that 75% of the electricity supply in April came from less expensive local fuels, the government hopes to collect an additional Rs. 29 billion in FCA.
Reduced hydropower supply, rising local coal and gas prices, and more LNG use are all considered to be contributing factors to the higher FCA.
According to the appeal, the real cost of gasoline for March was Rs. 8.98 per unit, whereas the reference fuel cost for the same month was initially calculated at Rs. 5.49 per unit. 8,639 GWh of electricity were produced in April at an estimated fuel cost of Rs. 79.56 billion, or Rs. 9.21 per unit; 8,375 GWh of that energy were distributed to DISCOs at a cost of Rs. 8.98 per unit.
The request for a public hearing to debate the proposed FCA on May 30 (next week) has been approved by NEPRA. The higher FCA will appear on June 2024 bills if authorized.
