Power price likely to go further up by Rs2.65 per unit

NEPRA will hold a public hearing regarding the matter on October 27

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has asked the National Electric Power Regulatory Authority (NEPRA) to approve Rs2.65 per unit power tariff hike under the head of monthly fuel price adjustment.

As per details, the CPPA on behalf of power distribution companies (DISCOs), has submitted an application to NEPRA seeking an increase of Rs2.6587 Kilowhatt per hour (kWh) in the power tariff over the reference fuel charges i.e. Rs5.0229 per unit for the month of September.

NEPRA will hold a public hearing over CPPA’s application on October 27 whereas it has invited all affected parties to raise written and oral objections as permissible by law at the hearing.

In its plea, the CPPA has said that 36.24 per cent of electricity was produced from hydropower, 17.05pc from coal, 8.90pc from gas and 18.90pc from imported LNG, 9.13pc from nuclear, 7.11pc from RFO (furnace oil), 1.64pc from wind, 0.12pc from baggasse, and 0.43pc from solar during September.

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Pursuant to NEPRA laws and the mechanism for monthly fuel price adjustment prescribed in the tariff determinations of ex-WAPDA distribution companies, the authority may make adjustments on monthly basis on account of any variation in fuel charges and policy guidelines which the federal government may issue and notify in the official gazette.

Earlier on September 15, the government increased the power tariff by Rs1.39 per unit, which will be applicable from November 2021.

Addressing a press conference in Islamabad along with the State Minister for Information and Broadcasting Farrukh Habib, Minister for Energy Hammad Azhar had said that the hike was due to mounting circular debt and the costly power houses installed by the last government.

Azhar said that NEPRA had recommended an increase of Rs3.5 per unit in March; however, he clarified that this increase will not be applicable to lifeline and domestic consumers who use less than 200 units of electricity in a month. “In this way, the power tariff hike is not applicable on 46pc of the consumer base,” Azhar had added.

He further added that the tariff hike will also not affect the seasonal electricity package or industrial package.

According to sources, for the period Jul-Oct 2021, net subsidy amounting to Rs102 billion and for the period effective from November till June, subject to implementation of the proposal, the net subsidy shall amount to Rs67 billion. In aggregate, the subsidy requirement will be reduced from Rs240 billion to Rs168 billion.

Sources also said that based on consolidated revenue requirements of DISCOs as well as the economic and financial policy, the tariff differential subsidy (TDS) was proposed to be modified and reduced through the circulation summary.

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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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