ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) Friday approved an increase of Rs3.21 per unit of electricity in terms of quarterly adjustment from April to June 2022.
The latest hike in electricity prices will impose an additional burden of Rs93.95 billion on electricity consumers. The authority forwarded its decision to the federal government that will come into effect from October 1, 2022.
The period of the previous adjustments expired on September 3, 2022. They added the authority brings new adjustments into effect just after the expiry of the previous adjustment, giving no relief to the power consumers from October 1. Earlier in the day, the NEPRA approved a reduction in power tariff by Rs4.89 per unit for K-Electric consumers on account of fuel cost adjustment (FCA) for August 2022.
According to the notification, the fuel cost adjustment for K-Electric consumers would be lowered by Rs4.89 per unit against KE’s petition for Rs4.21. It, however, stated that the reduction in tariff for July would be applicable for one month only.
The NEPRA said the reduction in FCA would be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, agriculture consumers and EVCS (Electric Vehicle Charging Station).
The power sector regulator conducted a public hearing on September 29. During the hearing, the issues raised pertained to whether the requested fuel price variation was justified and whether KE had followed the merit order while giving dispatch to its power plants.
KE, in its FCA request, submitted that the calculation for the month of August 2022 was based on Central Power Purchasing Agency-Guarantee (CPPA-G)’s CPPAG’s approved fuel cost component for the month of July 2022. This was subject to adjustment based on the determination of XWDISCOs FCA for August 2022 by NEPRA.
The authority, during the hearing, noted that the cost of KE’s own generation was around three times higher than the cost of energy it purchases.
Upon inquiry, KE explained that it has prepared a detailed plan for the induction of cheaper energy sources, including renewables. KE submitted that it plans to induct 1,182 MWs of renewables by 2030.
Earlier in September, the National Electric Power Regulatory Authority (NEPRA) approved dropping the power Tariff for K-electric consumers by Rs4.87 per unit. –Agencies
