ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved national average uniform decrease of Rs 1.23 per unit in FCA of Discos for the month of December 2024 and Rs 1.23 per unit FCA of K-Electric for November 2024.
According to the determination, Discos actual national average uniform FCA for December 2024 was Rs 9.4081/ kWh against the reference FCA of Rs 10.6364/ kWh, hence, NEPRA has approved negative adjustment of Rs 1.2283/kWh for Discos.
The reduction shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, Electric Vehicle Charging Stations (EVCS), pre-paid electricity consumers of all categories who opted for pre-paid tariff and agriculture Consumers of all the Discos. The negative adjustment on account of monthly FCA is also applicable to the domestic consumers
having Time of Use (ToU) meters irrespective of their consumption level.
The negative adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of December 2024. In case any bills of February 2025 are issued before the notification of this decision, the same may be applied in subsequent month.
K-Electric: NEPRA has also approved a negative adjustment of Rs 1.23 per unit for KE for November 2024 to be recovered in the bills of February 2025. KE, in its petition had sough negative adjustment of Rs 4. 98 per unit to refund Rs 7.179 billion.
According to determination, the Authority is also cognizant of the fact that KE’s new generation tariff for the MYT 2024-30 has been determined by the Authority vide decision dated 22.10.2024, whereby certain costs on account of part load, open cycle and degradation curves along-with start-up costs have been allowed. However, monthly FCAs being allowed to KE since July 2023 till November 2024, are as per the previous MYT 2017-23, wherein such costs were not envisaged. KE has worked out an amount of Rs.8.7 billion on account of these costs for the period from July 2023 to June 2024, which if approved by the Authority would be passed on to the consumers. In view thereof, and not to over burden the consumers at a later stage, the Authority has decided to allow retention of
an amount of Rs.5.444 billion, from the instant negative FCA of KE. Any additional amount required would be retained from the future negative monthly FCAs of KE. The retained amount would be adjusted against the pending cost on account of part load, open cycle and degradation curves along-with start-up costs.
Based on the discussion, the Authority has decided to allow negative FCA of Rs.l.23/kWh to KE for the month of November 2024, to be passed on to the consumers in the billing month of February 2025. In case any bills of February 2025 are issued before the notification of this decision, the same may be applied in subsequent month.
Member (Tariff) Mathar Niaz Rana, in his additional note said that KE requested negative FCA of Rs.4.98/kWh (negative Rs.7,179 million) for the month of November 2024 which was advertised in the newspapers and a public hearing was held on the
matter.
According to him, actual FCA of KE for November 2024 has been worked out as negative Rs.5.0029/kWh i.e. Rs.7.215 billion. However, as reported, certain costs amounting to Rs.8.7 billion on account of part load, open cycle and degradation curves along-with start-up costs under the newly determined MYT, as requested by KE, are pending scrutiny therefore negative FCA of only Rs.1.23/kWh is being allowed to KE for the month of November 2024 and an amount of Rs.5.444 billion is being withheld which is to be adjusted against the pending costs, once the same is approved by the Authority.
” In my opinion, claim of Rs.8.7 billion is still under consideration of the Authority and the matter is yet to be finalized. In absence of final decision by the Authority on the matter of Rs.8.7 billion, the benefit of negative amount of Rs.5.444 billion should not be withheld and the entire negative FCA of Rs.5.0029/kWh (Rs.7.215 billion) may be passed on to the consumers which is highly anticipated and expected by the consumers after the hearing,” he said adding that once the matter of Rs.8.7 billion on account of part load, open cycle and degradation curves along-with start-up costs is finalized, the Authority may also decide whether to pass on the positive impact of Rs.8.7 billion on to the consumers upfront or to stagger it in later FCA decisions of KE.
Another member also supported the viewpoint of Member (Tariff) , however, his additional note was nor part of the determination issued by the Regulator on Wednesday . Ends
