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CPPA wants Nepra to increase power tariff by Rs2.65

It will pass on burden of Rs20b to consumers

SAMAA | - Posted: Oct 20, 2021 | Last Updated: 1 month ago
SAMAA |
Posted: Oct 20, 2021 | Last Updated: 1 month ago

Photo: Online

The Central Power Purchasing Agency or CPPA has requested the National Electric Power Regulatory Authority or Nepra to increase the per unit price of electricity by Rs2.65 for the month of September.

The CPPA said that 13 billion units of electricity were produced in the month of September at a cost of Rs104 billion.

The per unit cost of non-hydel power generation for the month were:

  • Diesel – Rs21.74 per unit
  • Furnace Oil – Rs19.23 per unit
  • LNG – Rs14.91 per unit

Electricity was also imported from Iran at a cost of Rs13.11/unit. The line losses are calculated at 20 paisas per unit.

The Nepra has approved the CPPA’s request and will hear it on October 27 where the regulatory authority will decide whether to increase the electricity price or not.

If it approves, this will mean that the electricity consumers will have to bear a burden of over Rs20 billion.

Government proposes Nepra to increase power tarrif

The CPPA request comes less than a week after Federal Minister for Energy Hammad Azhar said that the government has proposed Nepra to increase the power tariff as Pakistan’s circular debt soars.

“An increase of Rs1.39 a unit will be applicable in power tariff from November 1,” he said. “This will not be applicable on consumers using less than 200 units of electricity.”

The minister said that Pakistan was now self-sufficient in electricity. The government, he said, was targeting to increase the demand. “We introduced an industrial package last year which has been successful as we have seen a 15% increase in demand,” he added.

Demand for electricity, he said, had risen 6-7% since the peak-hour tariff was removed from the industrial sector.

Seasonal Electricity Package

The government is launching the ‘Seasonal Electricity Package’ under which consumers will get an extra discount for using extra units preceding their last year’s usage.

“We will also be introducing a new Quarterly Tariff Adjustment of 15 to 24 paisa from November 1, bringing the total increase to Rs1.1,” he said. Azhar outlined measures taken to improve recoveries and losses in the power sector.

“The circular debt was increasing at a rate of Rs450 billion when PTI formed the government,” he said.  “The rate of increase has now decreased to Rs150 billion.”

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