CPPA seeks Rs4.5 per unit hike in electricity price

Power tariff is likely to go up as Central Power Purchasing Agency (CPPA) has sought Rs4.5 per unit hike and National Electric Power Regulatory Authority (NEPRA) is scheduled to hear the matter on May 31, 2022.

As per details, inflation-hit masses are likely to bear a jolt in the form of hike in electricity price as CPPA has submitted an application and asked to jack up the power tariff by Rs4.0554 per kilowatt hour (kWh) on account of fuel charges adjustment (FCA) for the month of April for Ex-WAPDA distribution companies. NEPRA’s hearing on the application of the CPPA is scheduled to be held on May 31.

According to sources in the power sector, if NEPRA approves Rs4.5 per unit hike in the power tariff then power consumers of DISCOs will bear additional burden of approximately Rs59 billion and 45 crore. However, NEPRA will take final decision after hearing the matter and scrutiny of data submitted by CPPA.  

The CPPA, on behalf of power distribution companies (DISCOs), has informed the NEPRA that total 13 billion and 55 crore unit of electricity was produced with different fuels at production cost of Rs10.66 per kWh while the reference cost for April 2022 was set at Rs6.60 per unit.

According to the CPPA, electricity generated with hydel source was 18.55 percent, coal 16.74pc, furnace oil 12.07%, gas 9.85%, Re-gasified Liquefied Natural Gas (RLNG) 19.42%, nuclear 17.37%, wind 3.59%, baggasse 0.82% and solar 0.67% in the said month of April 2022.

It is pertinent to mention that this requested hike in power tariff will not be applicable on K-Electric consumers and lifeline consumers of DISCOs if NEPRA approves the power tariff increase under the head FCA of April 2022.