ISLAMABAD   -   National Electric Power Regulatory Authority (NEPRA) Wednesday in­creased power tariff for the distri­bution companies (XWDiscos) by 4.34/unit on account of monthly fuel adjustment charges (FAC) of July.

However, for the K-Electric NEPRA has approved a reduction of Rs 3.63/unit in tariff on account of monthly fuel adjustment charges (FAC).

NEPRA has conducted separate public hearings for CPPA-G month­ly FAC and KE monthly FAC on ac­count of July FAC. Public hearing was also held on the quarterly ad­justments of KE for the 4th quarter of FY 2021-22. The hearing was in­formed that the matter of suspen­sion of fuel adjustment collection by Lahore High Court was only for one month. The court’s decision is for the monthly adjustment of June, a Nepra official added.

The CPPA-G was of the opinion that if Rs 133 billion, due on account of monthly FAC of June, were not re­ceived, it will not be possible to con­tinue the production of electricity.

This is the effect of rising fuel costs globally, the CPPA-G official said. In case of failure in collection of June FAC, the payments to IPPs will be de­layed and there will be no money for fuel procurement. 

NEPRA conducted public hear­ing on CPPA-G petition for an in­crease of power tariff on account of month FAC by Rs 4.6954/uit. NEPRA’s hearing was presided by Chairman NEPRA Tauseef H. Faroo­qi. In its petition, filed on behalf of the ex-WAPDA Discos XWDiscos, the Central Power Purchasing Agency (CPPA-G) had requested that during July the reference fuel charges of Rs6.2879/unit were charged from the consumers, however, the actu­al fuel charges were recorded at Rs10.9833/unit. Therefore, the CP­PA-G had requested NEPRA for an increase of Rs4.6954/ unit in the power tariff for the month under FAC mechanism.

During the hearing, the NEPRA official informed that due to the vi­olation of the merit order an ad­ditional burden of Rs 7.42bn was incurred in July. Similarly, the con­sumers were burdened with Rs 6.93bn due to LNG shortage, the official informed.

In another development, the Oil and Gas Regulatory Authority (OGRA) has reduced the price of liq­uefied petroleum gas (LPG) for do­mestic consumers by Rs 75.11 per 11.8kg cylinder while for commer­cial cylinder it has been slashed by Rs 287. According to a notification issued by OGRA, the price LPG has been slashed by Rs 6.36/kilogram for domestic and commercial con­sumers for September 2022. 

Following reduction in the pric­es, the domestic gas cylinder weigh­ing 11.8 kilograms will reduce to Rs2,496 from Rs 2571.41 in Au­gust and the commercial cylinder (45.4kg) would now cost Rs9,604. After the reduction of Rs 6.36/ kg, a kilogram of LPG will be available at Rs211. LPG is being used for cooking purposes in areas where piped natu­ral gas is not available.