Another price increase possible
Nepra will hold a hearing on Tuesday in reference to a case filed by power distribution companies.
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) will hold a hearing on Tuesday in reference to a case filed by power distribution companies. The case pertains to granting permission for increasing electricity prices by Rs0.52 per unit for the first month of the current fiscal year, under the monthly fuel variation tariff adjustment formula.
According to sources, the calculations prepared by the power companies will be analysed and arguments of all stakeholders will be heard before the authority reaches any decision on the tariff increase.
It has been learnt that the distribution companies have sent requests through the Central Power Purchasing Agency (CPPA) stating that the total production cost incurred to supply electricity to customers during the month of July has been Rs4.61 per unit while the reference price fixed by the government was Rs4.09 per unit.
Therefore, the companies have asserted that they should be allowed to increase the price per unit by Rs0.52 in order to cover the difference.
Nepra officials said that the income and expenses of the distribution companies will be analysed to ascertain the amount of increase to be allowed.
The officials added that the power distribution companies had requested permission for an increase of Rs1.02 per unit for the month of June. However, Nepra had only approved an increase of Rs0.64.
Published in The Express Tribune, August 24th, 2010.
The National Electric Power Regulatory Authority (Nepra) will hold a hearing on Tuesday in reference to a case filed by power distribution companies. The case pertains to granting permission for increasing electricity prices by Rs0.52 per unit for the first month of the current fiscal year, under the monthly fuel variation tariff adjustment formula.
According to sources, the calculations prepared by the power companies will be analysed and arguments of all stakeholders will be heard before the authority reaches any decision on the tariff increase.
It has been learnt that the distribution companies have sent requests through the Central Power Purchasing Agency (CPPA) stating that the total production cost incurred to supply electricity to customers during the month of July has been Rs4.61 per unit while the reference price fixed by the government was Rs4.09 per unit.
Therefore, the companies have asserted that they should be allowed to increase the price per unit by Rs0.52 in order to cover the difference.
Nepra officials said that the income and expenses of the distribution companies will be analysed to ascertain the amount of increase to be allowed.
The officials added that the power distribution companies had requested permission for an increase of Rs1.02 per unit for the month of June. However, Nepra had only approved an increase of Rs0.64.
Published in The Express Tribune, August 24th, 2010.