NEPRA approves Rs1.11 per unit hike in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Monday approved Rs1.11 per unit hike in power tariff on account of variations in fuel charges for the month of September 2020, putting a cumulative burden of Rs12 billion on consumers.

The power regulator said that the authority, after incorporating the adjustments, has “reviewed and assessed an increase of Rs1.1 138/kWh in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of September 2020”.

NEPRA said that the fuel cost per unit of electricity production in September was Rs3.95 while the advance fuel cost was fixed at Rs2.84.

Life consumers and K-Electric are exempted from the tariff hike, according to a notification issued to this effect.

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XWDISCOs will show the fuel charges adjustment in respect of September 2020 in the billing month of December 2020.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, (NEPRA Act) read with the mechanism formula determined by the authority in the tariff determinations for XWDISCOs for the FY 2017-18 and notified in the official gazette, NEPRA has to make adjustments in the approved tariff on account of any variations in the fuel charges on a monthly basis.

According to NEPRA, in order to make adjustments in the approved tariff of the Ex-WAPDA DISCOs due to variations in the fuel charges for the month of September 2020, necessary information as to the details of the actual fuel charges etc. was obtained from Central Power Purchasing Agency Guarantee Limited (CPPA-G).

The authority conducted the hearing in the matter on October 29, 2020, at NEPRA Tower, Islamabad. Subsequently, on the date fixed for hearing, representatives from CPPA-G, National Power Control Center (NPCC), NTDC, media and general public were present; however, no representative from WAPDA Power Privatization Organization (WPPO), Sui Southern Gas Company Limited (SSGCL), Sui Northern Gas Pipelines Limited (SNGPL), Ministry of Energy and Ministry of Finance attended the hearing despite service of notice.

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

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