NEPRA jacks up power prices by Rs4.3 per unit

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) announced on Thursday that it has allowed a Rs4.3 per unit increase in power prices on account of Fuel Price Adjustment (FPA) for the month of November 2021.

As per the decision, NEPRA had assessed the increase beforehand in the applicable tariff for power distribution companies (DISCOs) except for K-Electric and lifeline consumers. Actual fuel charges in November, 2021 stood at Rs8.0401 kWh whereby the reference charge was fixed at Rs3.7381/kWh and a fuel price variation of Rs4.3020/kWh was recorded.

According to sources, an estimated Rs40 billion is to be collected by the DISCOs from the public who consume a minimum of 50 units per month excluding K-electric and lifeline consumers. 

Moreover, the power tariff hike of Rs4.30 per unit will be applicable on all customers except for lifeline consumers. This increase would be highlighted separately in the customers bill based on the number of units billed in the month of November, 2021. In accordance with this, DISCOs are required to adjust the fuel charges from November, 2021 to the billing month of January, 2022 in compliance with the orders of the courts.

Earlier, in a tariff petition filed by the Central Power Purchasing Agency (CPPA) with NEPRA, the CPPA had requested to increase the electricity price by Rs4.33 per unit on account of fuel price adjustment for November 2021 highlighting the fact that 8.24 billion units of electricity were generated at an aggregate production cost of Rs66.52 billion. 

The CPPA claimed that there has been a 14 per cent increase in electricity generation Year on Year (YoY) in the month of November and that the Rs4.33 per unit increase in power prices is due to an increase in international fuel prices amounting to Rs26 billion in total.


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