Power consumers, excluding those of K-Electric, will pay an additional Rs1.53 per unit on their December electricity bills, a notification issued by the National Electric Power Regulatory Authority read on Wednesday.
The order applies to the customers of the following electricity companies:
- Faisalabad Electric Supply Company
- Hyderabad Electric Supply Company
- Lahore Electric Supply Company
- Peshawar Electric Supply Company
- Sukkur Electric Power Company
These companies are collectively called the Ex-WAPDA distribution companies (DISCOs).
The increase will not apply to lifeline consumers, those consuming less than 50 units a month, and will be shown separately in the consumers’ February 2021 bills on the basis of units billed to the consumers in the month of December 2020.
Customers will pay this amount in February.
The power sector’s regulator notified this one-time increase under Fuel Charges Adjustment following a request from the Central Power Purchasing Agency.
Fuel Charges Adjustment is a component of the electricity tariff. The tariff or price of electricity includes charges for fuel (think furnace oil) used in electricity generation. The price taken at the time of billing varies over the course of the month because of changes in international oil prices. It can increase or decrease, which needs adjustment.
The Fuel Charges Adjustment is the mechanism that allows power companies to do this and recover any legitimate increase in fuel cost.
The benefit of any reduction in fuel price is given only to those who consume 301 units per month or more.
