The Nepra has concluded its hearing on a request to raise electricity prices by Rs0.48 per unit under the monthly fuel adjustment.
According to details surfaced on Thursday, industrial consumers termed the long-term three-year package insufficient and called for an end to cross-subsidy. The request to increase power tariffs for December’s monthly fuel adjustment was filed by the Central Power Purchasing Agency.
The CPPA said electricity consumption rose by 22 per cent compared with last year. In December, industry used two billion units of electricity. Power consumption has declined due to solar energy.
Industrial consumers described the government’s relief package as incomplete, saying the electricity rate stands at 13 cents. They said the package made little difference. The increase under the monthly fuel adjustment will also apply to K-Electric consumers. Industry is also paying cross-subsidy and interest of Rs3.23 as a circular charge. They said industry did not cause an increase in circular debt. In the region, electricity for industrial units costs five cents, while local industry pays 13 cents. They demanded an end to cross-subsidy, saying the rate would fall to nine cents.
Nepra completed the hearing on the request to raise prices under December’s monthly fuel adjustment. A decision will be taken after scrutiny of the data.
Meanwhile, petroleum product prices may rise. Initial working shows a slight reduction in petrol prices, while diesel and other products are likely to become more expensive.
According to sources, the petroleum industry has sent its price working to Ogra. Preliminary calculations show a reduction of 36 paisa per litre in petrol, while an increase of Rs9.47 per litre has been proposed for diesel. An increase of Rs3.45 per litre has been recommended for kerosene.
Similarly, a proposal has surfaced to raise the price of light diesel oil by Rs7 per litre. Sources said Ogra will forward the working paper to the government, after which the government will have the authority to adjust taxes and levies.
If taxes and levies are reduced, the burden of higher prices may ease. A final decision on petroleum product prices will be taken after the Prime Minister’s approval.
