NEPRA approves 84 paisa increase in power tariff for July

September 01, 2020: National Electric Power Regulatory Authority on Tuesday approved 84 paisa per unit increase in power tariff for July under the monthly fuel adjustment mechanism.

The regulator held a public hearing on the petition filed by Central Power Purchasing Agency (CPPA-G) which was presided over by Chairman NEPRA Tauseef H Farooqi. The consumers would pay Rs12 billion which would be recovered in the billing of next month. However, the decision would not be applicable on the lifeline, Agri and K-Electric consumers.

The NEPRA observed that expensive electricity was generated from furnace oil and diesel during July and power plants generating low-cost electricity were not operated.

Officials of the National Power Control Centre (NPPC) told that there was a 19 percent share of furnace oil in our energy system. Owing to best management no load-shedding was carried out in July, the officials further said.

They said, "We have to carry out 8-10 hours load-shedding if the furnace and diesel-based power plants were not operated".

It is pertinent to mention here that the CPPA-G sought 86 paisa per unit increase in power tariff for the month of July under the monthly fuel adjustment formula.

The CPPA-G on behalf of ex-WAPDA distribution companies maintained that it had charged consumers a reference tariff of Rs 3.5420/kWh against the actual fuel cost of Rs 4.4035/kWh during the said period.

CCPA-G said total energy from all sources remained at 14,710.76 Gwh in July and the total cost was calculated to Rs 63.560 billion with an average per unit fuel cost of Rs 4.4035 per unit.

Some 36.76 percent of electricity was generated from hydel, 17.55 percent from coal, 20.62 percent from RLNG, 10.05 percent from local gas, 5.84 percent from furnace oil, wind 2.34 percent and nuclear 4.86 percent during the said period.

APP