Electricity bills to drop in Oct as Nepra okays fuel adjustment refunds

Fuel adjustment refunds will not be applicable to pre-paid electricity consumers having opted for pre-paid tariffs
An undated image of electricity towers. — Unsplash
An undated image of electricity towers. — Unsplash

A month after taking the decision, the National Electric Power Regulatory Authority (Nepra) notified on Thursday that electricity consumers who paid higher rates in August 2024 will be offered refunds of Rs0.8555 per unit in their October bills.

The notification issued by the power regulator states that consumers were charged higher than the cost of power generation borne by power distribution companies in September, as reported by The News.

The decision was taken by Nepra in a public hearing on September 26 after the Central Power Purchasing Agency (CPPA) had filed a petition with Nepra to be permitted to slash Rs0.5755 per unit on account of fuel adjustment. However, Nepra allowed CPPA to offer Rs0.8555 per unit to consumers.

Read more: K-Electric to offer Rs247m in refunds to customers

The power regulatory body stated in the notification that the decision shall be equally applicable to every consumer category except lifeline consumers, domestic consumers using up to 300 units, agriculture consumers and Electric Vehicle Charging Stations (EVCS), consumers of all the power distribution companies (Discos) except consumers of K-Electric.

Furthermore, the grant of fuel adjustment refunds will also not apply to pre-paid electricity consumers of all categories having opted for pre-paid tariffs.

Member Tariff Mathar Niaz Rana in his note lamented the dramatic hike in the bagasse-based tariff, which crossed local coal prices, drawing consumer ire.

Rana noted the bagasse tariff was stable at Rs5.982 per kWh in June and July 2024 but underwent unprecedently surged to Rs12.48 per kWh in August 2024, exceeding the local coal tariff, which rose more gradually from Rs11.03 per kWh in June to Rs12.27 per kWh in August 2024.