Nepra approves discount on extra power usage for XDISCOS, K-Electric consumers

KARACHI: The National Electric Power Regulatory Authority (Nepra) has given the green light to the federal government’s Winter Demand Initiative, which will benefit consumers of XDISCOS and K-Electric (KE).

This package, valid from December to February, aims to offer relief to consumers by reducing the price of extra electricity units used during this period. The cost for these additional units will be Rs26.07 per unit, and the discount will be reflected in December bills.

While initially, industrial net metering and wheeling consumers were not part of the government’s plan, Nepra has now extended the relief to them as well. The benchmark for calculating the relief will be the higher of either the consumption during the same month last year or the average consumption in the past three years.

Importantly, Nepra clarified that this initiative will not affect the overall tariffs, as it is designed to be subsidy-neutral. Any changes in marginal cost will be adjusted through monthly Fuel Cost Adjustments (FCAs) and in case, the price of fuel drops, the savings will be passed on to consumers through quarterly tariff updates.

On the matter of KE consumers, Nepra acknowledged that excluding them would not only impact sales but also create unfair treatment. As such, KE will now receive compensation like other distribution companies and must pass on benefits of the winter package to electricity consumers.

Nepra approved a Rs1.14 per unit reduction in the monthly FCA for October which will apply to most consumers of distribution companies, except for lifeline consumers, prepaid users, and electric vehicle stations. However, KE customers will not benefit from this reduction.

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