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Power suppliers seek tariff increase


Express July 19, 2010 1 min read

ISLAMABAD: Power distribution companies have sought an increase of Rs1.02 per unit in tariff for June under the fuel adjustment mechanism.

The request has been made to the National Electric Power Regulatory Authority (Nepra), which is expected to conduct a hearing on the tariff petition next week.

Sources said power distribution companies have contended that in June the supply of electricity to consumers cost Rs5.34 per unit while the government had set reference price at Rs4.28 per unit for the month. This shows a difference of Rs1.02 per unit between the production cost and reference price.

Nepra sources said the authority will assess the details provided by the power suppliers and work out the difference between production cost and reference price. After this review, Nepra will make a decision on the power tariff.

However, the application of any tariff increase will not be on lifeline consumers, who use up to 50 units a month.

In May, the electricity suppliers had sought a tariff increase of Rs1.07 per unit, but after conducting the hearing, Nepra permitted a rise of 91 paisa.

However, consumers had to pay an extra 14 paisa per unit because they were already paying 77 paisa per unit under April adjustment.

Published in The Express Tribune, July 20th, 2010.

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