Electricity consumers are expected to receive a reprieve with a reduction of Rs0.70 per unit following the fuel charge adjustment (FCA) for September 2024.
The Central Power Purchasing Agency-Guaranteed (CPPA-G) has requested this negative adjustment, which could result in a refund of approximately Rs8.55 billion to consumers from the Distribution Companies (DISCOs).
Read More: MG Pakistan announces up to Rs25 lakh discounts on ZS EV and MG 4 EV
The National Electric Power Regulatory Authority (NEPRA) is scheduled to conduct a public hearing on October 30, 2024, to review CPPA-G’s proposal for adjustments in DISCO tariffs.
In a separate development, the Energy Task Force has effectively renegotiated agreements with eight bagasse-fired Independent Power Producers (IPPs), potentially resulting in savings of Rs. 85-100 billion for the government.
The updated agreements involve prominent sugar mills, including Hamza Sugar Mills, Chiniot Sugar Mills, and JDW-II, among others. The price for bagasse fuel has been reduced from Rs. 5,600 per ton to Rs. 4,500, along with a 5 percent retroactive deduction on the revised fuel cost.
This change is anticipated to affect 42 percent of the tariffs previously approved for these Independent Power Producers (IPPs).
