Nepra indicates Rs5.95 per unit hike in power tariff

ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) on Monday indicated a hike of Rs5.95 per unit in power tariff on account of fuel charges adjustment (FCA) for the month of January 2022.

In a public hearing on Central Power Purchasing Agency (CPPA-G), presided over by Nepra Chairman Tauseef H. Farooqi, the regulator noted that expensive electricity worth Rs7 billion was generated due to shortage of LNG.

The public hearing on monthly fuel charges adjustment was attended by Nepra’s members, Rehmatullah Baloch, Rafiq Ahmed Sheikh and Engineer Maqsood Anwar Khan.

The massive increase in electricity rates is due to low hydropower generation and generating expensive electricity from high speed diesel (HSD) and furnace oil during month of January.

In its petition the CPPA-G claimed that in January it charged the consumers at Rs6.5124 per unit while the actual cost of electricity was Rs12.61 per unit. The CPPA-G had sought an increase of Rs6.1060 per unit over the reference fuel charges of Rs6.5124 per unit. However, according the preliminary examination of the data, the regulator made a deduction of around 15 paisa from the demand made by the CPPA-G. Now an increase of Rs5.95 per unit has been estimated in power tariff which will have an impact of Rs50 billion on the power consumers.

It is worth to mention here that in December also the Nepra had allowed a hike Rs3.10 per unit which was charged from the electricity consumers in their January bills. “The authority has reserved the judgment and will issue its detailed decision after further scrutiny of the data,” the Nepra said.

In its application, the CCPA-G had claimed that in the month of January, power plants produced 33.15pc of the total electricity from coal at Rs14.1 per unit and 5.83pc through hydropower generation.

Furnace oil bas power plants also produced 14.07pc electricity at Rs 22.8 per unit. Electricity generated from High Speed Diesel (HSD) contributed 6.73pc electricity at Rs25.98 per unit.

The expensive power was also produced from imported RLNG which share in total energy generation stood at 7.12pc and it cost Rs16.7 per unit. Local gas was used to generate 14.37pc of the electricity at generation cost of Rs 7.7 per unit. Nuclear fuel contributed in 14.37pc of the total production, wind 2.22pc and bagasse 1.22pc. The cost of nuclear fuel based electricity was Rs1.075 per unit. Electricity imported from Iran contributed 0.36pc electricity at rate of Rs15 per unit. It is higher rate of electricity Pakistan had imported from Iran against rate of around Rs10 per unit earlier.

The share of solar power was 0.53pc. The total electricity produced in the month stood at 8,797 Gigawatt hours (GWh). The power tariff hike would not be applicable to lifeline consumers and the K-Electric consumers.

 

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