Power tariff may go up by Rs7.96 per unit

Central Power Purchasing Agency (CPPA) has asked the National Electric Power Regulatory Authority (NEPRA) to approve a hike of Rs7.96 per unit in the power tariff on account of fuel charges adjustment (FCA) for the month of May 2022.

As per details, CPPA on behalf of power distribution companies (DISCOs) has submitted an application with NEPRA and sought hike in power tariff by Rs7.96 per unit under FCA of May, 2022. And, NEPRA will conduct a hearing on CPPA plea for power tariff hike on June 27.

The CPPA in its plea informed that 22.89 per cent of the electricity has been generated with Re-gasified Liquefied Natural Gas (RLNG) at a cost of Rs27.92 per kilowatt hour (kWh), while 13.77 percent of electricity has been produced with coal at a cost of Rs18.01 per kWh, and 12.90 per cent of electricity has been generated with nuclear at a cost of Rs1.05 per unit in the month of May 2022. Similarly, 8.80 percent of the power has been produced with furnace oil at a cost of Rs33.67 paisa per unit, while 9.99 percent of electricity has been generated with the gas at a cost of Rs10.12 per unit, 0.37 percent of electricity with imported Iran at a cost of Rs18.95 per unit, 0.11 percent of the electricity has been generated with mixed fuel at cost of Rs4.68 per unit and 0.53 percent of the electricity has been produced with bagasse at a cost of Rs5.98 per unit. Furthermore, 24.5 percent of electricity out of the total power generated in May 2022 has been generated with hydel source, 5.32 percent of electricity with wind and 0.61 percent with solar source in the month of May 2022.

It is also learnt from CPP plea that total 14,656.89 Gigawatt hour of electricity was produced while net delivered to DISCOs was 14,264.95GWh in the month of May 2022.

According to NEPRA, CPPA has sought Rs7.9647 per kilowatt hour (kWh) hike in the power tariff for the month of May 2022 over the reference fuel charges of Rs5.9322 per kWh for the DISCOs. And, NEPRA is scheduled to conduct a hearing to consider the proposed adjustment on June 27, 2022.  

It is pertinent to mention here that already burdened masses would find a severe blow if the NEPRA approves the proposed hike in the power tariff which in result would add salt to their injuries in the form of additional burden of billions of rupees through electricity bills.

Pursuant to Section 31 (7) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority (NEPRA) in the tariff determination of Ex-WAPDA Distribution Companies (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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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

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