Electricity bills to drop as Discos propose refund to consumers in November

• CPPA approaches Nepra to finalise monthly fuel price adjustment.
• Ex-Wapda Discos offer Re0.7057 refund to consumers for November.
• Refund to not apply on domestic consumers using up to 300 units.
  

ISLAMABAD: In a breath of fresh air for consumers reeling under high power bills, ex-Wapda distribution companies (XWDiscos) have proposed a refund of Re0.7057 per unit to consumers in their November 2024 bills following higher charges levied in the previous month, The News reported on Wednesday.

The Central Power Purchasing Agency (CPPA) has filed a petition to the National Electric Power Regulatory Authority (Nepra) on behalf of these companies to finalise the monthly fuel price adjustment (FCA) for September.

The development comes as the incumbent government has targetted Rs8-10 per unit cut in power tariff following the cancellation of contracts by five independent power producers (IPPs).

With the government expecting to save the national exchequer Rs411 billion, Minister for Energy (Power Division) Awais Leghari had earlier said that they would reduce the power tariff in mutual consultation with generation companies.

The minister's announcement came as the burden of high electricity tariffs falls disproportionately on the middle and lower-income segments of society, fueling public outrage and eroding trust 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 evaluate whether the requested fuel charges variation is justified, and if companies adhered to economic merit order (EMO) in dispatching power from their plants and private suppliers. 

If approved, the refund will apply to all categories except lifeline users, domestic consumers using up to 300 units, electric vehicle charging stations, pre-paid electricity consumers across all categories, and agricultural consumers. This would mark the third consecutive month of FCA reductions after 18 months of consistent increases.

In an earlier decision for July's FCA, Nepra the Discos to refund Rs0.3692 per unit to consumers in September bills. From January 2023 to June 2024, FCA remained positive, leading to extra charges for consumers, with the highest adjustment reaching Rs7.056 per unit in January 2024.

The CPPA's petition reveals reference fuel charges for September 2024 were Rs9.8006 per unit, while the actual costs were Rs9.0949 per unit, resulting in the requested Re0.7057 refund.