The National Electric Power Regulatory Authority (Nepra) has approved a negative adjustment of 86 paisa per unit in the Fuel Charges Adjustment (FCA) for Distribution Companies (Discos), resulting in a total refund of approximately Rs10 billion to consumers for August 2024.

This decision follows a request from the Central Power Purchasing Agency–Guaranteed (CPPA-G), which sought a reduction of 55.75 paisa per unit for the consumption of 12,752 GWh of electricity, amounting to roughly Rs7 billion in refunds. Consumers will see this relief reflected in their October 2024 electricity bills.

During the deliberations, discrepancies regarding the tariff for bagasse-fired plants were noted, with some members of Nepra expressing concerns over the high rates approved for these plants without adequate consumer input.

The bagasse tariff surged from Rs5.98 per kWh in June to Rs12.48 per kWh in August, raising alarm among consumers.

Members of Nepra emphasized the need for greater transparency and public participation in tariff-setting processes, particularly regarding the controversial bagasse rates that have recently exceeded local coal prices.

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They urged for a thorough review of this tariff to address rising consumer concerns and ensure fair pricing practices.

The decision marks a critical step in addressing consumer grievances while highlighting ongoing challenges within the power sector’s pricing mechanisms.