CPPA requests Rs0.92 increase in electricity tariff

Nepra will hold a hearing on the matter on February 25


Our Correspondent February 19, 2021

ISLAMABAD:

The Central Power Purchasing Agency (CPPA) on Friday requested the National Electric Power Regulatory Authority (Nepra) for an increase of Rs0.92 in the electricity tariff in the context of January’s fuel price adjustment.

According to CPPA, more than seven billion units of electricity were produced in January costing about Rs51,660,000,000, at [an average of ] about Rs5.75 per unit.

“Expensive furnace oil generated 12.06 per cent of electricity in January,” CPPA said. “About 16.51 per cent of electricity was generated from domestic gas and 11.34 per cent from imported LNG [Liquefied natural gas].”

The agency added that the price of electricity generated from furnace oil stood at Rs 12.34 per unit for the previous period. Coal generated 31.38 per cent of electricity in January whereas 10.55 per cent of electricity was generated from nuclear sources costing about Rs1 per unit.

“In January, the reference fuel cost was about Rs 5.75 per unit,” the CPPA added.

Nepra will hold a hearing on the matter on February 25 at the CPPA’s request.

On February 13, the federal government dropped an electricity bombshell on the people as the power tariff went up by Rs1.95 per unit in a bid to implement uniform tariff across the country.

Read more: Govt jacks up power tariff by Rs1.95

The announcement came as Nepra allowed Rs1.95 per unit to increase in electricity rates.

In line with the uniform tariff policy, the federal government also notified the increase of Rs1.95 for K-Electric customers as well.

Earlier, the regulator had allowed an increase of Rs3.34 per unit for the year 2019-20.

After the fresh determination by the regulator, the average tariff will rise from Rs13.35 per unit to Rs16.69 per unit.

“The tariff rationalization by way of further adjustments and an increase of Rs. 1.95/kWh in variable charge of all consumers and Rs.40/KW/M in fixed charges (except agriculture consumers) of consumers categories, where applicable, be made for K-Electric…” said a notification issued by the power division.