Electricity bills to come down as Discos propose refund to consumers in November

• CPPA approaches Nepra to finalize monthly fuel price adjustment.
• Ex Wapda Discos Offer Rs 0.7057 refund to consumers for November.
• Refund not applicable for residential consumers using up to 300 units.
  

ISLAMABAD: In a breath of fresh air for consumers suffering from high electricity bills, former Wapda Distribution Companies (XWDiscos) have proposed a refund of Rs 0.7057 per unit to consumers in their November 2024 bills after higher charges levied last year month. The News reported on Wednesday.

The Central Power Purchase Authority (CPPA) has applied to the National Electricity Regulatory Authority (Nepra) on behalf of these companies to finalize the monthly fuel price adjustment (FCA) for September.

The development comes as the incumbent government has set a target of Rs 8-10 per unit cut in electricity tariffs following the cancellation of contracts by five independent power producers (IPPs).

As the government expects to save the national exchequer Rs 411 billion, Minister for Power (Energy Department) Awais Leghari had earlier said that he will reduce the electricity tariff in mutual consultation with generating companies.

The minister’s announcement came as the burden of high electricity tariffs falls disproportionately on the middle and lower income strata of society, fueling public anger and eroding confidence in the government’s ability to manage the economy.

Meanwhile, on the issue of monthly fuel price adjustment, Nepra has scheduled a public hearing on October 30 this month to assess whether the requested variation in fuel charges is justified and whether the companies have adhered to the economic value chain (EMO) when sending energy from their factories and private suppliers.

If approved, the refund will apply to all categories except lifeline users, residential consumers using up to 300 units, electric vehicle charging stations, prepaid electricity consumers in all categories and agricultural consumers. That would mark the third straight month of FCA cuts after 18 months of steady increases.

In an earlier FCA decision of July, Nepra the Discos will refund Rs 0.3692 per unit to consumers in September bills. From January 2023 to June 2024, the FCA remained positive, leading to additional charges for consumers, with the highest adjustment reaching Rs 7,056 per unit in January 2024.

The CPPA report reveals that benchmark fuel charges for September 2024 were Rs 9.8006 per unit, while the actual cost was Rs 9.0949 per unit, resulting in a claimed refund of Rs 0.7057.