ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is all set to jack up power price by Rs2.97 per unit under the head monthly fuel price adjustment for the month of September 2019.
Earlier, the Central Power Purchasing Agency (CPPA), on behalf of the power distributing companies (DISCOs), had asked NEPRA to increase the electricity price by Rs2.97 per unit on account of fuel price adjustment, sources said.
The CPPA had pleaded NEPRA that variation in the fuel cost for electricity generation should be adjusted. Following the request, the power sector regulator had decided to hold a hearing on 30th Oct (tomorrow) to take a final decision in this regard.
According to sources, the electricity consumers would be burdened with an additional Rs25 billion after the approval from NEPRA. “This proposed hike in electricity price will be collected from power consumers during the month of November,” sources added.
CPPA, in its application, had informed NEPRA that approximately 13.62 billion units of electricity were produced at the cost of Rs70 billion during September.
It elaborated that out of the total power generation in the said month, 37.09pc was generated from hydel sources, 16.39pc from coal, 6pc from residual fuel oil (RFO), 5.50pc from nuclear sources, 1.10pc from wind sources, 0.45pc from solar, 11.85pc from gas and 21.06pc from imported liquefied natural gas (LNG).
“Pursuant to Section 31 (7) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the authority in the tariff determination of Ex-WAPDA distribution companies (DISCOs), the authority may on monthly basis make adjustments in the approved tariff on account of any variation in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette,” an official NEPRA document read.
It is pertinent to mention that NEPRA in its decision dated 8th October 2019, pertaining to FPA of July, had increased power prices by Rs1.78 per unit owing to variation registered between the actual fuel charges and the reference fuel charges.