Nepra approves Rs2.4 power tariff hike

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has allowed power generation companies to increase the power tariff by Rs2.4 from today (Wednesday).

The decision was taken under the fuel price adjustment formula for the month of July. The increase is not applicable to lifeline consumers. The KESC power tariff will however remain unchanged.

Power distribution companies (DISCOs) had earlier requested Nepra to increase the electricity tariff by Rs2.07 per unit under the monthly fuel adjustment charges for July.

A senior Nepra official told The Express Tribune that according to DISCOs, the per-unit cost of electricity during July was Rs6.42 while Nepra’s reference price was Rs4.35 per unit for the same period.

Nepra has also expressed irritation over the government purchasing electricity at the rate of Rs35.55 from Turkish power company Karkay.

Nepra officials have said that IPPs will be able to enhance production if this amount is paid to them instead.

According to an earlier report in The Express Tribune, the government has planned to increase power tariff by 14 per cent in four phases by levying surcharge on electricity consumers in a bid to generate over Rs 100 billion to eliminate circular debt which has crossed Rs 400 billion.

The power tariff plan recently tabled before ministerial level energy committee shows that government has also planned to enhance the electricity rate for lifeline consumers and end subsidy for consumers falling under slabs of one to 100 units and 100 to 300 units.