MM News

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is likely to approve another hike in electricity tariff by Rs2.07 per unit.

The increased charges will be taken as part of fuel charge adjustment (FCA) for the month of July. The power companies have urged to Central Power Purchasing Agency (CPPA) to hike the electricity tariff by Rs2.07 per unit.

In this regard, NEPRA will hear the pleas on August 30 (tomorrow). The plea stated that the ratio of power generation from thermal resources was 37.18%, 14.68% from coal, 1.98% from furnace oil and 1967% from Liquefied Natural Gas (LNG) in July.

The rate of local power production was 7.61%, 14.29% from nuclear fuel for generating 14.388 billion units of electricity. The production cost was recorded at Rs8.96 per unit, whereas, the reference cost was fixed at Rs6.89 per unit.

Earlier this month, NEPRA approved an increase in the power tariff by Rs5.40 per unit. The hike was made in the monthly Fuel Charges Adjustment (FCA) for July 2023.

The additional charges will be collected from consumers in September 2023. However, the hike is not applicable to lifeline customers and consumers of K-Electric (K-E).

Distribution companies sought NEPRA’s approval for the collection of Rs2.07/unit additional charges from their consumers in September 2023. The request is in relation to the monthly Fuel Charges Adjustment (FCA) for July 2023. If the proposed increase is sanctioned, it could result in total financial impact of more than Rs30 billion on consumers of electricity.