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    Title: Electricity distributors to charge up to Rs 14.24 over fuel adjustment
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    Electricity Distributors To Charge Up To Rs 1424 Over Fuel Adjustment 30450
    Description: The National Electric Power Regulatory Authority (Nepra) has allowed power distribution companies (Discos) and K-electric (KE) to recover deferred fuel adjustment surcharge up to Rs 14.24 per unit from electricity consumers. The power companies will recover this surcharge from consumers in eight months from March to October 2023. The companies will recover Rs 10.34 per unit from domestic protect consumers using zero to 200 units per month, Rs 14.24 per unit from non-protected consumers using zero to 200 units, Rs 14.24 per unit from those consuming 201 to 300 units per month, and Rs 9.90 per unit from private agricultural consumers. The entire amount will be recovered from electricity consumers in installments from March to October 2023. The government was to pass on this fuel adjustment for the months of June and July 2022. However, Prime Minister Shehbaz Sharif had announced to defer it. KE consumers The power regulator has also allowed K-Electric, the electricity distributor in Karachi, to recover deferred fuel adjustment surcharge from the consumers up to Rs 13.87 per unit. KE will recover Rs 9.97 per unit from domestic protect consumers using zero to 200 units per month, Rs 13.87 per unit from non-protected consumers using zero to 200 units, Rs 13.87 per unit from those consuming 201 to 300 units per month, and Rs 9.90 per unit from private agricultural consumers. KE will also recover the amount during the months from March to October 2023. Also read: NEPRA rejects lower tariffs for solar units According to the NEPRA decision, the Ministry of Energy submitted that rebasing of uniform tariff was notified by the Federal Government in order not to burden consumers disproportionately in a sequence of Rs.3.5/unit in July 2022 and Rs 3.5/unit in August 2022. Consumers were hit by Rs 9.8972 per unit of FCA plus Rs 7 per unit of rebasing simultaneously in August 2022 billing. This was an average increase of Rs 16.90 per unit over and above the July 2022 rates. These adjustments in tariff significantly increased the electricity bills for the months of August and September 2022. Moreover, devastating floods due to abnormally heavy monsoon rains also affected electricity consumers across the country. Under this scenario, the prime minister decided to stagger the recovery of the FCAs, which was to be charged in August and September 2022. However, the government had deferred its implementation. Also read: Another power tariff hike on cards During a public hearing conducted by the power regulator, the energy ministry reiterated its stance that the FCAs to be charged in August and September 2022 were deferred for some category of consumers in order to provide relief, considering the revision in base tariff, and impact of floods. It highlighted that there was an average increase of Rs 16.90 per unit, over and above the July 2022 rates as the above adjustments in tariff significantly increased the electricity bills for the months of August and September 2022. During the hearing, consumers had strongly opposed recovering the deferred surcharge from them and requested the power regulator not to burden them with such a high increase in their electricity bills.
    Published Date: 10-Mar-2023
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