September 27, 2018 (MLN): The National Electrical Power Regulation Authority (NEPRA) has approved a hike of Rs.1.16 per unit in electricity tariffs for all power distribution companies, except K-electric, on account of fuel cost adjustment for the month of August 2018.
During the month of August, cost of fuel had taken a leap, yet the consumers were supplied electricity at lower rates. The lost amount is to be recovered by adjusting it in the next month’s electricity bills.
The power distribution companies expect to generate an added sum Rs.16 billion from the consumers as a result of this decision.
The distribution companies include, Faisalabad, Gujranwala, Hyderabad, Islamabad, Lahore, Multan, Peshawar, Quetta, Sukkur and tribal areas’ electricity supplying companies. However, the tariff hike will not apply to the consumers of K-electric and those lifeline consumers who consume up to 50 units a month.
The decision was made at a public hearing yesterday, of a petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the distribution companies. The hearing was presided over by the Vice chairman NEPRA, Saifullah Chattha.
The CPPA had originally appealed for a tariff increase Rs.1.4931 based on its estimation of the actual cost of electricity which stood at Rs.6.248 as compared to a fuel price of Rs.4.755.
NEPRA however resolved that the actual cost worked out at Rs5.92 per unit and hence Rs1.16 per unit hike is fair.
