NEPRA increases power tariff by Rs1.22/unit

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has jacked up electricity tariff by Rs1.22 per unit on account of monthly fuel price adjustments for the month of May 2018, adding to the troubles of the already burdened general public.

NEPRA has approved an increase of Rs1.2212/kWh (per kilowatt hour) in the tariff of electricity consumers under the head monthly fuel price adjustment for the month of May 2018. The rise in power tariff shall be applicable to all the consumer categories except lifeline consumers of all the power distributing companies (DISCOs) and the consumers of K-Electric.

According to NEPRA’s notification and the information so far provided, the actual pool fuel cost for the month of May 2018 is Rs6.6123/kWh, against the reference fuel cost component of Rs5.2908/kWh.

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The fuel charges adjustment in the billing month of July 2018 shall be shown separately in the consumer’s bills on the basis of units billed to the consumers in the month of May 2018 by DISCOs, said NEPRA’s notification.

Sources in the power sector said that the already burdened power consumers will face a heavy burden of almost Rs15 billion and Rs650 million due to the approved hike in power tariff.

It is relevant to mention that DISCOs purchased 57.083 GWh from small and captive power plants during May 2018. And, the Central Power Purchasing Agency (CPPA-G) claimed Rs 391.53 million fuel cost of this energy which was slightly higher than the NEPRA working of Rs391.41 million. Accordingly, for the purpose of instant adjustment of May 2018, cost of Rs391.41 million has been considered, said NEPRA.

Pursuant to the provisions of Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997, (NEPRA Act) read with the mechanism/formula determined by the Authority in the tariff determinations for ex-WAPDA DISCOs for the FY 2015-16 and notified in the official gazette, the Authority has to make adjustments in the approved tariff on account of any variations in the fuel charges on a monthly basis.

It is worth mentioning that the ongoing month of July has brought shocking news for countrymen as masses will have to bear the brunt of Rs .22/unit power tariff hike and Rs14 per litre POL price hike after the decision of NEPRA and The Oil and Gas Regulatory Authority (OGRA) respectively. And, due to the rise in power tariff and petroleum products prices, the government has planned to collect around Rs100 billion from the masses in July after a massive raise in POL prices for July 2018.

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Ahmad Ahmadani
The author is an investigative journalist. He can be reached at [email protected]
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