Fuel adjustment: Nepra allows Rs 2.38 per unit power tariff

Published: April 26, 2012

Nepra rejected the request made by CPPA and allowed Rs 0.59 per unit for February and Rs 1.79 per unit for March. PHOTO: FILE

ISLAMABAD: 

The National Electric Power Regulatory Authority (Nepra) on Wednesday allowed power distribution companies (Discos) to raise the power tariff up to Rs 2.38 per unit to recover the cost of fuel for the months of February and March 2012.

Nepra held a public hearing on Wednesday chaired by Vice Chairman Nepra Ghayas-ud-Din. During proceedings, member Sindh Habib-Ullah Khilji and member Khyber-Pakhtunkhwa (K-P) Shoukat Ali Kundi expressed serious concerns over the fuel cost claimed by power generation companies (Gencos) and small power producers.

The Central Power Purchase Agency (CPPA) had filed a petition before Nepra to raise the power tariff on account of fuel adjustment by Rs 0.69 per unit for the month of February and Rs 1.88 per unit for the month of March to recover the cost of fuel for power generation.

During the proceedings, however, Nepra rejected the request made by CPPA and allowed Rs 0.59 per unit for February and Rs 1.79 per unit for March. The decision will be implemented once the notification is issued.

Nepra disallowed shifting the burden of Rs697 million on to consumers in order to recover the cost of fuel consumed by Rental Power Plants (RPPs). The Supreme Court (SC) has already directed the government to cancel contracts with the RPPs and the National Accountability Bureau (NAB) is also investigating the issue.

Hearing the petition filed by CPPA, Habib-Ullah Khilji and Shoukat Ali Kundi expressed concern regarding revenue collection amounting to Rs1.09 billion in fuel adjustment against power generation claimed by small power producers.

Published in The Express Tribune, April 26th, 2012.

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