Nepra slashes power tariff by Rs4.36

Refund of Rs14 billion will be passed on in the bill for March 2015 to consumers using less than 300 units per month

Zafar Bhutta March 30, 2016

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has decided to cut the power tariff by Rs4.36 per unit on account of fuel adjustment for February 2016.

Following the move, a refund of around Rs14 billion will be passed on in the bill for March 2015 to consumers using less than 300 units per month. However, this refund will not apply to agricultural and K-Electric consumers.

Nepra increases power tariff for K-Electric

Nepra took this decision on Tuesday at a public hearing on the monthly fuel adjustment mechanism.

The hearing was attended by officials of the Central Power Purchasing Agency (CPPA) and officials of Nepra’s tariff section. The CPPA, which is responsible for the purchase and sale of electricity, had proposed a cut of Rs3.63 per unit refund to the consumers.

The government has committed to the International Monetary Fund, the World Bank, Asian Development Bank and Japan International Cooperation Agency to gradually phase out untargeted subsidies, while continuing to protect the most vulnerable consumers.

The regulator also decided to approve a Rs4.5 billion cut from the account of Nandipur Power Plant. Speaking on the occasion, Nepra Chairman Tariq Sadozai said the regulator had approved the tariff for the Nandipur Power Plant.

Power tariff cut by Rs3.83 per unit

Sadozai lamented that there was load-shedding in the country but plants that could generate cheaper power were not being run. Nepra member Khawja Naeem said the CPPA and the National Transmission and Dispatch Company (NTDC) were involved in criminal acts by favouring some elements, which generated expensive electricity.

He said electricity could be made cheaper by Rs5.50 per unit. “The CPPA has no powers to change the merit order,” he said, adding that power plants generating power at the rate of Rs4.50 per unit were run only partially.

Published in The Express Tribune, March 30th,  2016.


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NKAli | 5 years ago | Reply How come the slash in electricity unit rates does not apply to KESC? Does NEPRA not have control over KESC? Salams
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