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August fuel adjustment cost: Rs10b shock  looms

September 23, 2020 10:58 PM


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The federal government is likely to increase electricity tariffs, making consumers bear with Rs10 billion additional burden.

The Central Power Purchasing Agency (CPPA) made an appeal to the National Electric Power Regulatory Authority (Nepra) to increase electricity tariff by Rs0.98 under the head of fuel adjustment cost of last month, August. 

The authority will take up the matter on September 30 and if it gives go-ahead, additional charges will be enforced in the upcoming billing month.

Lifeline consumers using up to 50 units per month will be exempted while all other categories will be burden-bearers.  The revised rates will also not apply to K-Electric consumers. 

Three weeks ago, K-Electric got go-ahead to pass on fuel charge adjustments to its consumers at a meeting of the Economic Coordination Committee (ECC) with Adviser to PM on Finance and Revenue Hafeez Shaikh in the chair.

The CPPA on behalf of Discos to generate from Rs5b to 7b in additional revenue made the request to Nepra that has invited all the affected/interested parties to raise written/oral objections as permissible under the law at the public hearing.

The government has been under fire for failing to control price hike. The power tariff surge plan is following the exorbitant increase in prices of fuel, wheat and sugar.



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