ISLAMABAD - A hefty hike in electricity tariff is on the cards for power consumers as the Central Power Purchasing Agency (CPPA) has submitted a tariff petition with the National Electric Power Regulatory Authority (NEPRA) seeking to bridge what it calls a yawning gap between reference fuel cost and generation fuel cost.
Official sources at Water and Power Ministry privy to the development told The Nation that CPPA has pleaded to Nepra to approve Rs 2.19 per unit hike in power tariff on account of monthly price adjustment of January.
In a petition, it has submitted with the regulatory authority (Nepra), the CPPA asked the authority to jack up the power price by Rs 2.19 per unit because the hydropower generation remained low while thermal power production was at top during the above said one month time period, which had also caused per unit hike in power tariff. However, lifeline consumers who use 50 units a month would not be affected with this expected power tariff hike.
The CPPA has also said that Nepra had earlier fixed the reference fuel cost at Rs 9.58 per unit while generation fuel cost was recorded at Rs 11.77 per unit during January.
Similarly, six billion and 12 crore unit of power were sold at fuel cost of Rs 71 billion in said span of time. Reduced hydropower generation was only due to annual canal closure in the country, and power was generated while utilising the fuel of High-Speed Diesel (HSD) at a cost of Rs 23 per unit.
Sources in Nepra have confirmed the info and further said that the regulatory authority (Nepra) has accepted the plea of CPPA for hearing. And, the regulatory authority would hold hearing over the CPPA plea during the next week.