The National Electric Power Regulatory Authority (Nepra) completed its hearing on the Central Power Purchasing Agency’s (CPPA) request for monthly fuel adjustment, indicating a potential reduction of Rs1.03 per unit in electricity prices for one month.
The Nepra authority, chaired by Chairman Waseem Mukhtar, conducted the proceedings, during which it was stated that a final decision would be issued after assessing the presented data.
Officials from the CPPA briefed the authority, stating, “Power plants operated as per the merit order in December.”
According to the CPPA, fuel costs remained low during December, which contributed to the proposed reduction. The officials further noted, “Had the Neelum Jhelum Power Project been operational, the public would have benefited even more.”
The briefing revealed that under the winter package, electricity demand increased by 1.5 per cent, leading to an additional consumption of 180 million units by consumers. During the session, consumers raised questions regarding how CPPA’s financial losses were compensated.
A consumer asked, “How are CPPA’s losses covered?”
The Nepra officials responded that CPPA’s financial losses, which stood at 2.44 per cent in December instead of the projected 2.63 per cent, were not passed on to consumers.
However, the consumers further questioned, “If this money is not collected from the public, then where does it come from?”
CPPA representatives clarified, “The organisation covers its losses from its own profits.” A consumer inquired, “What is the profit margin that allows the CPPA to cover losses amounting to billions of rupees?”
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