NEPRA raises tariff for December by Re1

The difference in tariff is to be collected in February’s bills.

ISLAMABAD:

National Electric Power Regulatory Authority (Nepra) increased power tariffs of distribution companies (Discos) by Re1.01 per unit for December 2013 under the monthly fuel adjustment mechanism.

The regulatory authority took this decision on Thursday in a public hearing on a petition filed by Central Power Purchasing Agency (CPPA). Acting Nepra Chairman Khawaja Naeem presided over the meeting.

Current increase in tariff will not affect consumers of Peshawar Electric Supply Company (Pesco) and Karachi Electric Supply Company (KESC). Consumers who use up to 50 units a month are also exempted from the raise.

CPPA had sought Rs1.01 per unit raise in tariff on account of monthly fuel price adjustment.



During the hearing CCPA officials informed Nepra that fuel cost in December had been Rs8.87 per unit against reference price of Rs7.86 per unit in November.

In December the cost of electricity has been calculated at Rs59.439 billion, of which Rs281 million were added on account of transmission losses. Nepra officials expressed their concern over massive transmission losses.

Cost of power generation with High-Speed Diesel (HSD) remained at Rs23.50 per unit and furnace oil at Rs16.57 per unit. The raise in tariff will be imposed on consumers in February’s bills.

Khawaja Naeem, in his observation, stated that in December thermal power plants were operated on expensive HSD and Residual Fuel Oil (RFO) due to which the cost of electricity generation increased. However, consumers were provided relief in load-shedding hours during December. Hydel generation is at its lowest level since last week of December due to annual canal closure.

Published in The Express Tribune, January 17^th, 2014.