fbpx mmnews

NEPRA approves Rs0.64 per unit increase in electricity tariff

IESCO officials allegedly involved in installing bogus electricity meters

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has notified an increase of Rs0.64 per unit in power tariff putting an additional burden on inflation hit consumers.

According to the notification issued by NEPRA on Wednesday, the price of electricity has been increased by 64 paise per unit, which has been made in the matter of fuel charges adjustments for the month of February 2021.

NEPRA reviewed the information provided by CPPA-G seeking monthly fuel cost adjustment (FCA) and due diligence is done accordingly.

From the perusal of the information provided by CPPA-G, the actual pool fuel cost for the month of February 2021 is Rs.4.7987/kWh, against the reference fuel Cost component of Rs.4.1414/kWh based on the fuel references of the notified consumer-end tariff of Ex-WAI’DA DISCOs for the FY 2017-18.

The actual fuel charges, as reported by CPPA-G, for the month of February 2021 increased by Rs.0.6573/kWh (Annex-I), compared to the reference fuel charges of Rs.4.1414/kWh as mentioned above.

According to the data submitted by CPPA-G, XWDISCOs purchased 13.3 GWh from Captive Power Plants (CPPs) during February 2021, for which CPPA-G provided actual details of energy purchased from these plants. According to the details provided by CPPA-G, the actual fuel cost of this energy is Rs.62.65418 million.

Although, the same as per the NEPRA approved mechanism, works out as Rs.62.6535 million and the same has been considered while determining the FCA of February 2021.

The raise of Rs.0.6416/kWh shall be applicable to all the consumer categories except lifeline consumers of all the XWDISCOs.

The said adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of February 2021 by the XWDISCOs.

The Authority said XWDISCOs shall reflect the fuel charges adjustment in respect of February 2021 in the billing month of April 2021.

Sources said on the directions of the International Monetary Fund (IMF), the government will soon increase the price of electricity by Rs3.34 per unit in the first phase while in the second phase; electricity will cost another Rs 63 paise.