Power tariff increased by Rs2.04 per unit

Decision made under fuel price adjustment formula does not apply to KESC.

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved an increase of Rs2.04 per unit in power tariff of electricity distribution companies for July, excluding Karachi Electric Supply Company, under the monthly fuel price variation adjustment formula.

Nepra has sent a copy of the decision to the government and the tariff will be increased as soon as a notification in this regard is issued by the government. According to Nepra officials, the power distribution companies, through the Central Power Purchasing Agency, had sought a tariff increase of Rs2.07 per unit under the fuel price adjustment mechanism and the regulator announced the decision after evaluating accounts of the companies.

A Nepra official said the power companies in their petitions argued that they incurred a distribution cost of Rs6.42 per unit in July compared to Nepra’s reference price of Rs4.35 per unit. Therefore, to cover the difference between the reference price and the actual power cost, they said, the government should increase the tariff by Rs2.07 per unit.

However, after examining documents of the power companies, the regulator permitted a tariff increase of Rs2.04 per unit.

Published in The Express Tribune, September 8^th,  2011.