NEPRA to hear power tariff petitions on June 29

The National Electric Power Regulatory Authority (Nepra) has set a hearing on June 29 of petitions filed by power distribution companies for an increase of Rs1.07 per unit in tariff for May under the fuel adjustment formula.

In the hearing, Nepra will review the details provided by the power companies and hear viewpoints of consumers and other stakeholders. After hearing all of them, Nepra will take a decision on power tariff.

Sources told The Express Tribune that in the petitions the power companies argued that production cost of electricity in May was Rs5.72 per unit while the government set power supply cost at Rs4.65 per unit, which showed a deficit of Rs1.07 per unit. In order to cover the gap, they said, they have sought an increase in the power tariff.

However, final decision will be taken by Nepra after hearing all the stakeholders. If any increase in the tariff is allowed, it will not be applicable to lifeline consumers, which consume up to 50 units of electricity in a month.

Besides, the government is also expected to increase electricity tariff by 7.6 per cent in July which will take effect from April. This increase is being done to cover the reduction in subsidies for the consumers and to meet a key condition of multilateral lenders.

Published in The Express Tribune, June 27^th, 2010.