Business Desk 
Dec 07, 2024
The National Electric Power Regulatory Authority (Nepra) on Friday approved the federal government’s Winter Demand Initiative for consumers of XDISCOs and K-Electric (KE). The initiative, effective from December to February, offered additional units at Rs26.07 per unit. Nepra confirmed that relief would be reflected in December bills.
The benchmark consumption for this package was determined based on either the relevant month’s consumption for FY24 or the highest historical usage over the past three years. The initiative was deemed subsidy-neutral, with variations in marginal costs being adjusted through monthly Fuel Cost Adjustments (FCA) or quarterly tariff adjustments, benefitting consumers if costs remained low.
Nepra acknowledged the exclusion of KE consumers from the package would lead to discriminatory treatment and hinder sales growth, a key factor for the package's introduction. To ensure parity, Nepra directed KE to provide the same benefits to its consumers, with compensations aligned with other Discos.
Monthly FCA reduced by Rs1.14 per unit
Nepra also approved a reduction of Rs1.14 per unit for the October FCA, applicable to electricity bills of December. The Central Power Purchasing Agency (CPPA-G) had requested a Rs1.01 per unit reduction, which Nepra adjusted after reviewing the data and conducting a public hearing on November 26.
This reduction applied to all XDISCO consumers, excluding lifeline consumers, prepaid users, and electric vehicle charging stations. However, KE consumers were not included.
According to CPPA-G, the actual pool fuel cost for October was Rs9.2593 per unit, lower than the reference cost of Rs10.2752 per unit. The reduction reflected the Authority's effort to maintain a uniform tariff regime while incorporating adjustments for individual Discos.
Power Minister Owais Leghari commented: “The government is committed to further reducing the electricity prices.”
