The National Electric Power Regulatory Authority (Nepra) approved on Friday an increase of up to 3.75 cents in the unit price of electricity imported from Iran, a document available with The Express Tribune said.
The revision in power tariff will increase the unit price of imported electricity from Rs5.44 to anywhere between Rs6.09 and Rs8.70 per unit.
Pakistan will now have to make an additional payment of $5.086 million because of the upward revision in power tariff. The document said that the cost of electricity imported from Iran between January 1, 2011, and December 31, 2013, would be from seven to 10 cents per unit.
It added that the imported electricity would be supplied to rural areas of Balochistan through Quetta Electric Supply Company (QESC) and wouldn’t be linked to the national grid station.
Earlier, the National Transmission and Dispatch Company (NTDC) had asked Nepra to determine the unit price of electricity imported from Iran between January 1, 2011, and December 31, 2013.
The NTDC had also asked Nepra to introduce a second amendment to its July 5 agreement with Iran’s Tavanir Company for the import of electricity after the expiration of the first amendment.
The NTDC had also requested Nepra to revise the power tariff for the electricity bought in the past. According to the revised tariff that Nepra approved for the electricity bought during January 1, 2009, and May 30, 2011, Pakistan will have to make an additional payment of $11.336 million.
The document said that Pakistan and Iran signed an agreement on November 6, 2002, to buy 32 megawatts (MW) of electricity at the rate of three cents per unit.
The first amendment to this agreement was made on August 14, 2006, under which 39MW of electricity were to be imported at the rate of five cents per unit. This amended tariff was valid from January 1, 2008, to December 31, 2008, the document said.
After that, another amendment was made which remained valid from January 1, 2009, to December 31, 2009, under which electricity was imported at the rate of 6.25 cents per unit.
Under the current tariff of seven to 10 cents per unit, 35MW of electricity, in addition to the previous 39MW, would be imported from January 1, 2011, to December 31, 2013, the document said.
Published in The Express Tribune, August 27th, 2011.