NEPRA Reserves Decision to Raise Electricity Tariff by Rs. 1.43 Per Unit

The National Electric Power Regulatory Authority (NEPRA) has reserved its decision to increase electricity tariffs by Rs 1.43 per unit by former WAPDA distribution companies (Discos) after questioning tariff raise for the closed power plants.

The Central Power Purchasing Agency (CPPA) requests National Electric Power Regulatory Authority (NEPRA) to increase RS. 1.43 power tariff per unit (/kWh). The hearing was conducted by Chairman NEPRA Mr. Tauseef H. Farooqi at its headquarters in Islamabad today.

CPPA requested the regulator to increase the power tariff for July 2021.

Proposed FCA – July 2021

According to the data provided by CPPA to NEPRA, a total of 15679.72 GWh electricity is produced by power stations through various means, including Hydel, Coal, HSD (Diesel based plants), RFO (Furnace Oil), Gas, RLNG, Nuclear, Iran Import, Wind and Solar. Net electricity delivered to distribution companies was calculated as 15219.27 GWh. As per the CPPA petition, the generation cost was calculated as Rs. 6.74 per unit (/kWh), whereas the reference fuel charges are determined as Rs. 5.27 /kWh.

While chairing the hearing, chairman Nepra remarked that according to the data, the actual increase from the reference tariff is Rs. 1.37 /kWh.

He said that the agency is requesting power tariff adjustment for those power plants which are not operational. This is not an acceptable practice, and the authority will not allow any such increase for closed power plants. He said that due to the increase in the imported price of LNG, an extra burden of production cost was calculated to Rs. 9.6 billion.

The electricity consumers will bear Rs. 21 billion in their monthly bills if this increase of Rs. 1.37 per unit is approved. The authority’s decision on the tariff increase petition has been reserved and a notification will be issued later on.