The National Electric Power Regulatory Authority (NEPRA) on Monday notified a Rs. 4.9 per unit increase in the price of electricity in terms of fuel adjustment for ex-Wapda distribution companies (DISCOs).
The Rs. 4.9213/kWh increase will be shown separately in the consumers’ bills based on fuel adjustment for February 2024, reported a national daily.
Notably, the CPPA-G had requested a Rs. 4.9917 per unit hike, attributing the difference to operational costs such as the use of re-gasified liquefied natural gas (RLNG).
Before hiking the power tariff, NEPRA noted a negative growth of -12.2 percent in actual generation besides a continuous decline in national demand. Overall demand till February 2024 declined by 12 percent, which would likely cause higher quarterly adjustments and tariff increases.
NEPRA directed the CPPA-G and the Energy Ministry to analyze the impact of lifting commercial-based load-shedding on demand and also urged the evaluation of reducing capacity charges.
Concerns were raised during NEPRA hearings regarding the high fuel price adjustments, including the financial burden on consumers due to RLNG generation. The National Transmission and Despatch Company (NTDC) clarified that RLNG-based operation was necessary for system stability to avoid national blackouts.
NTDC reported provisional transmission and distribution losses, including those from the Matiari-Lahore Transmission Line Company (PMLTC), which were on the higher side and adjusted yearly.
It’s strange that on one side we are bearing the loadsheding and also paying capacity charges.
The other side of the story is that all thermal power plants are using old machinery which is unable to produce the contracted quantity of electricity. If honest performance audit is conducted the biggest scam of our history will be unearthed but it will never be conducted because of mutual interests.