Nepra increases power tariff by Rs2.24 per unit

ISLAMABAD: The Nepra first announced an increase in power tariff by Rs2.24 per unit on Tuesday and shortly afterwards reduced it by 27 paisas. The decision will be applicable to all except the consumers of Karachi Electric Supply Company (KESC). However, the decision will also not be effective on the lifeline consumers who utilise only 50 units a month.

However, Nepra (National Electric Power Regulatory Authority) right after elapse of one hour decreased the power tariff by Re0.27 per unit showing it also takes care of masses.In the notification, Nepra says, the tariff has been raised because of the increase in fuel cost incurred for thermal generation in the month of January.

As per the notification, the electric power distribution companies will fleece additional amount of Rs12 billion from the electricity consumers in the month of April. The regulator says that the government produced the electricity in the month of January by using the costly fuel of furnace oil and high speed diesel.

However, one hour later, Nepra issued the notification about raise in tariff by Rs2.24 per unit, another order was issued and the tariff was slightly reduced by Re0.27 per unit for the electricity consumed in February during the hearing on petition of Central Power Purchasing Agency (CPPA).

The CPPA pleaded during the hearing that the factual fuel cost on electricity production in the month of February remained at Rs7.58 per unit against the reference fuel cost of Rs7.84 per unit. The total cost incurred for production of electricity in February remained at Rs44.49 billion. The electricity of 5.8680 billion units was sold out in February. No electricity was generated on high speed diesel in the month of February. However, cost of electricity based on coal in the month of February remained at Rs4.49 per unit and on furnace oil Rs15.96 per unit, on gas Rs4.33 per unit, on nuclear Rs1.33 per unit, and the cost for electricity imported from Iran remained at Rs10.55 per unit.