Increase in electricity tariffs sought

Distribution companies have requested an increase of 52 paisa in per unit price of electricity.


Irshad Ansari August 19, 2010

ISLAMABAD: Electricity distribution companies have requested an increase of 52 paisa in per unit price of electricity under the fuel variation tariff adjustment formula in the first month of fiscal 2010-11.

The National Electric Power Regulatory Authority (Nepra) has approved the consideration of the request through the Central Power Purchasing Authority (CCPA) and it is expected that following the hearing next week, Nepra will allow electricity distribution companies to increase their rates upwards. The final decision will be at the discretion of Nepra.

According to sources, the application sent to the CCPA said that the cost incurred by electricity distribution companies in July was Rs4.61 per unit which is 52 paisa more than the government’s reference price of Rs4.09 per unit. The electricity distribution companies have, therefore, requested an equivalent increase in their per unit prices.

Nepra officials have said that the application will be reviewed taking into consideration the breakdown of revenues and expenses of the electricity distribution companies. Following the review, an adjustment in the tariff will be declared and implemented.

According to Nepra officials, the per unit cost incurred by electricity distribution companies for the month of June was Rs5.34 while the government’s reference price was Rs4.28, which amounted to a difference of Rs1.02 per unit. The distribution companies submitted an application to revise electricity tariffs upwards by the same amount, but following a review, Nepra allowed the distribution companies to revise their tariffs upwards by 64 paisa.

Published in The Express Tribune August 20th, 2010.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ