NEPRA may allow up to Rs4.75 per unit hike in tariff

Islamabad: The National Electric Power Regulatory Authority (NEPRA) is likely to allow distribution companies an increase of up to Rs4.75 per unit in power tariff under the monthly fuel cost adjustment (FCA) for October 2021.

According to details, a public hearing will be conducted by the NEPRA chairman to review the Central Power Purchasing Agency (CPPA)'s plea for a Rs4.75 per unit increase in power tariff in terms of fuel price adjustment for the month of October for all of the distribution companies excluding K-Electric.

In its plea, CPPA stated that the country generated a total of 11.29 billion units of electricity in the month of October, out of which 10.98 billion units were sold to the distribution companies.

The recent hike will result in the extra burden of Rs61 billion on the consumers.

It stated that in October, per unit of electricity was produced from diesel at the cost of Rs25.22 and Rs22.22 per unit of electricity was produced from furnace oil.

The contribution of power generation from hydropower was 23.26 per cent, 16.69 per cent from coal, 10.88 per cent from furnace oil and 0.51 per cent from diesel.

Earlier on November 9, the National Electric Power Regulatory Authority (NEPRA) had jacked up electricity tariff under fuel adjustment for the month of September making one unit of electricity Rs2.52 more expensive for the consumers.

The price hike was applied for November bills, the notification of the NEPRA read and added that the increase will not be applicable on the lifeline and K-electric consumers. With this increase, the collective burden borne by the people will be Rs90 billion.