64 paisa hike in electricity tariff

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved a 64 paisa per unit hike in electricity rates for June under the monthly fuel adjustment formula. However, this in effect means a 27 paisa per unit reduction for consumers since the increase allowed to power distribution companies under May’s adjustment was 91 paisa. The decrease of 27 paisa will be reflected in the new bills the consumers are set to receive.

On Monday, Nepra reviewed power distribution companies’ petitions sent through the Central Power Purchasing Agency for an increase of Re1.06 per unit under the “monthly fuel variation tariff adjustment formula”.

After listening to the stakeholders’ viewpoint and reviewing company accounts, Nepra allowed a 64 paisa per unit hike instead of Re1.06 requested.

A Nepra official told The Express Tribune that the power distribution companies said in their petitions that the cost of electricity production stood at Rs5.34 per unit during the month of June whereas the reference price set by the government for the month was Rs4.28 per unit. Therefore, the difference between the cost of production and the reference price came to Re1.06.

The Nepra official said the increase does not apply on ‘lifeline’ consumers (households using up to 50 units per month).

It may be recalled that power distribution companies had sought permission for a tariff increase of Re1.07 per unit under May’s adjustment, but following a Nepra hearing they were allowed to make a 91 paisa hike. But since consumers were already paying 77 paisa extra under April’s adjustment, the  adjustment in May was in effect that of 14 paisa.

Now that Nepra has only allowed 64 paisa per unit adjustment for June as against 91 paisa for May, the consumers are set to receive slightly reduced bills.

Published in The Express Tribune, July 27^th, 201.