Around 50 paisa for each unit increment in electricity rates for all consumers of the distribution companies (Discos) is expected from “The National Electric Power Regulatory (Nepra).” After gathering a meeting of the Economic Coordination Committee (ECC) the cabinet did not take a proper decision on the issue. The 50 paisa for every unit increment in tax for all consumers will address the challenge of about Rs2.42 per unit increment for household consumers of up to 300 units and private agricultural consumers during the current month.
The power ministry has passed an outline to the ECC, saying that under the law and month to month fuel cost change (FCA), Nepra had just decided the real fuel charges for the month of November 2019 to June 2020. Nepra informed the FCA for Nov 19 to June 20 on Aug 7 for giving to consumers in two months (August and September 2020). Under the assurance, the FCA rate in the charging month of August 2020 was set at Rs2.4228 per unit (for local buyer up to 300 units, private sector). Rs1.1711 per unit increment for other consumers.
This increase was endorsed after a freeze on electricity tax imposed by the government and reached to a conclusion on June 30, 2020. A few members from the ECC saw that such increment in power prices and taxes for residential consumers of lower class would be politically challenging due to the ongoing flooding situation and post-Covid financial conditions. Others were in the decision should not have handed over to the ECC in any case. The fact that the cabinet freeze had reached a conclusion and the FPA was a domain of the Nepra, which should have make a decision. The power division along these lines, pulled back its rundown from the ECC.
According to an informed source the Nepra said it had independently informed the government that a windfall of fuel supply was expected. An across the board adjustment of Nepra decided FCA by including consumers, not qualified for alleviation yet needed to endure the higher effect. This would result into a 50 paisa for each unit increment for all the buyers in all cases. For this, the power ministry would compose a letter to the controller for approbation of procedural requirements. Nepra would then issue a new notice for around 50 paisa for every unit increment for all purchasers.
