Power tariff hike by Rs1.95/unit on the cards

ISLAMABAD: Power consumers should get ready to bear power price hike by approximately Rs 1.95 per unit and National Electric Power Regulatory Authority (NEPRA) is likely to announce a final decision in this regard very soon.

On Thursday, NEPRA conducted a public hearing regarding fuel charges adjustments (FCA) for the month of August 2021 for power distribution companies (DISCOs). However, the authority (NEPRA) has reserved its judgment in this regard.

Sources in the power sector said that NEPRA is likely to jack up power tariff by Rs 1.95 under the head monthly FCA of August, 2021. And, a decision in this regard will be made public very soon.

Earlier, the Central Power Purchasing Agency (CPPA), on behalf Ex-WAPDA DISCOs, had sought an increase of Rs 2/unit over the reference fuel charges i-e Rs 4.77/unit for the power consumers of DISCOs.

CPPA has informed the NEPRA that price of power produced with high speed diesel (HSD) was Rs 22.62/unit, coal Rs 9.03/unit, Residual Fuel Oil (RFO) Rs 18.24/unut, gas Rs 8.30/unit, Re-gasified Liquefied Natural Gas (RLNG) Rs 13.44/unit, nuclear Rs 0.99/unit, import Iran Rs 12.35/unit, mixed sources of fuel Rs 4.67/unit, and Rs 5.98/unit with baggasse source of fuel.

Pursuant to section 31 97) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determinations of Ex-WAPDA DISCOs, the Authority may on monthly basis make adjustments in the approved tariff on account of any variations in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.

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