Discos Demand Fuel Cost Adjustment of Rs. 4.69/Unit for July

The power distribution companies (Discos) are looking to generate Rs. 64 billion in revenue through an additional fuel cost adjustment (FCA) of Rs. 4.69 per unit. The Central Power Purchasing Agency (CPPA) has demanded Rs. 4.69 per unit FCA on behalf of Discos for electricity consumed in July. If the adjustment is approved, Discos will generate Rs. 64 billion in additional revenue in the billing month of September. The extra cost adjustment is almost 75 percent higher than the reference fuel cost charged by the power supply companies in July. CPPA informed that consumers were charged a reference fuel cost of Rs. 6.29 per unit in July. However, due to various circumstances, the actual price came out to Rs. 10.98 per unit, necessitating an additional charge of Rs. 4.69 per unit. The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing on 31 August. If cost adjustment is approved, users will pay additional Rs. 4.69 per unit in September. The additional FCA for July is 53 percent lower than the record Rs. 9.9 per unit FCA the Discos had asked for in June. This decrease had come on the back of the substantial increase in electricity generation from cheaper sources like hydro and nuclear power and enhanced reliance on domestic resources. As per the available data, 64 percent of electricity generated in July came from cheaper domestic resources with fixed prices compared to a 51 percent share in July.