In a rare move, power distribution companies (Discos) have requested a negative fuel cost adjustment (FCA) of 31 paise per unit, potentially refunding around Rs4.5 billion to consumers. This refund is a result of overcharging in July due to a 20% increase in the base tariff for the current fiscal year.
The Central Power Purchasing Agency (CPPA) has filed a petition with the power regulator, Nepra, seeking approval for the refund. If approved, the amount will be adjusted in consumers’ bills for September. This development comes as a surprise, as fuel cost adjustments usually result in additional charges for consumers.
The CPPA’s petition states that the actual fuel cost for July was lower than estimated, resulting in an overcharging of Rs4.5 billion. This excess amount will be refunded to consumers through a negative fuel cost adjustment. The power regulator, Nepra, has accepted the petition and will hold a public hearing on August 28 to consider the request.
This potential refund is a welcome relief for power consumers, who have been facing increasing electricity rates. The government’s decision to increase the base tariff by 20% for the current fiscal year had added to the burden on consumers. However, this refund will provide some respite, and consumers can expect a reduced electricity bill in September.
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