Electricity Bills Set to Decrease in November with Proposed Refund
Power consumers in Pakistan are likely to receive a refund of Rs. 0.7057 per unit on their November 2024 electricity bills. This comes after overpaying for electricity in September, and Ex-Wapda distribution companies (XWDISCOs) have proposed the refund for the billing month of November.
CPPA’s Petition for Fuel Price Adjustment
The Central Power Purchasing Agency (CPPA) has submitted a petition to the National Electric Power Regulatory Authority (NEPRA) to finalize the Fuel Cost Adjustment (FCA) for September. NEPRA has scheduled a public hearing on October 30 to review the petition and determine if the proposed adjustment is justified. During the hearing, NEPRA will also assess whether the power dispatch adhered to the Economic Merit Order (EMO). If approved, the refund will apply to most consumer categories, with the exception of lifeline users, households consuming up to 300 units, electric vehicle charging stations, pre-paid electricity users, and agricultural consumers.
Consecutive FCA Reductions After Period of Increases
This would be the third consecutive month of FCA reductions following a stretch of 18 months where fuel cost adjustments increased. NEPRA’s decision for July’s FCA led to a refund of Rs. 0.369 per unit in the September bills. Between January 2023 and June 2024, the FCA remained positive, resulting in extra charges for consumers, with a peak adjustment of Rs. 7.05 per unit in January 2024.
Fuel Price Calculation for September
According to the CPPA’s petition, the reference fuel charges for September were Rs. 9.8006 per unit, while the actual fuel cost amounted to Rs. 9.0949 per unit. This difference of Rs. 0.7057 per unit is what the CPPA proposes to refund consumers in the upcoming November bills, pending NEPRA’s approval.
