October 22, 2020

NEPRA Approves Increase In Electricity Prices By Rs 1.78/Unit

On Wednesday, September 4, 2019, the National Electric Power Regulatory Authority (NEPRA) allowed an increase in the prices of electricity by Rs1.78/unit, generating an additional Rs24.6 billion from the consumers. However, the increased prices would not apply to K-Electric Users and baseline users, who consume less than 50 units/month.

The increase in prices was based on the Central Power Purchasing Authority (CPPA) petition on behalf of the power distribution companies (DISCOS). The petition said that in the month of July, the fuel prices charged to the consumers were less than the actual price of fuel and hence the consumers should pay the adjustment in the next month.

The petition said that the per-unit cost of fuel was Rs5.46 in July and the consumers were charged Rs3.54 and hence the adjustment of Rs1.93 should be charged to the consumers in the coming months. Nepra, after analyzing the petition only allowed an increase of Rs1.78/unit.

Nepra officials said that had the power companies relied on efficient LNG based power production the expenses for production would have been Rs5 billion lesser than the cost of energy generated from fossil fuel. The CPPA rejected the accusation and said that economic merit order was followed in power production and the power was produced as efficiently as it could be. Nepra Vice-Chairman Mr. Rehmatullah Baloch directed the CPPA and National Transmission Dispatch Company (NRDC) to submit a report on approved merit order for July and how it was implemented.

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