Fuel adjustment charges: NEPRA approves Rs7.90 per unit hike for May

The National Electric Power Regulatory Authority (Nepra) on Monday approved an increase of Rs7.90 per unit in the power tariff on the account of fuel charges adjustment (FCA) for May 2022.

The power regulatory authority took the decision after conducting a hearing on the plea of the Central Power Purchasing Agency (CPPA) seeking a hike of Rs7.96 per unit.

The approved tariff will be shown separately in the electricity bills on the basis of units billed to the consumers in the month of May 2022.

Read: NEPRA raises power tariffs by another Rs3.99 per unit

It will be applicable on all consumer categories of distribution companies, except Karachi Electric (KE) consumers and lifeline customers of all ex-WAPDA distribution companies (XWDISCOs).

According to the CPPA, the reason stated for the hike request is the production cost of the power producers which has reached the highest level in the country’s history. The power production cost was Rs13.89 per unit in May while the fuel cost was Rs5.93 per unit.

However, the fuel prices have seen a record hike in the recent weeks which has increased the generation cost for the companies.