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CEA's Proposed FPPAS Adjustment Mechanism:

The Central Electricity Authority (CEA) has proposed an adjustment mechanism for the Fuel and Power Purchase Adjustment Surcharge (FPPAS), aiming to stabilize electricity tariffs for consumers through Public Notice dated 30-12-2024. CEA has asked all stakeholders to give their comments by 15-01-2025.

The proposal suggests collecting a "Base FPPAS" not exceeding a certain percentage of the Approved Revenue Requirement (ARR) approved by the Commission. This percentage would be determined based on the weighted average of FPPAS values from the past three years. The collected funds would be deposited into an FPPAS stabilization fund to cover unforeseen fluctuations in fuel and power purchase costs.

The CEA's proposal to standardize tariff components is a welcome step towards reducing uncertainties in consumer electricity bills. However, it's crucial to ensure transparency and avoid situations where FPPAS becomes an unpredictable and burdensome component.