NEPRA allows power companies to increase Rs2.86 per unit

Date:

The National Electric Power Regulatory Authority (NEPRA) has allowed power distribution companies (DISCOS) to increase Rs2.86 per unit in electricity cost as part of additional fuel cost adjustment.

The regulator has also allowed K-Electric to increase Rs4.83 per unit for electricity sold in March. The increase will have a cumulative financial impact of about Rs44 billion for electricity sold in March.

The increase in the cost of electricity was finalised at public hearings presided over by NEPRA Chairman Tauseef H Farooqui.

According to a report in a leading newspaper, the revised rates would be charged to consumers in the billing month of May and would yield about Rs29 billion for DISCOS, Rs7.5 billion for KE and about Rs7.5bn in additional revenue to the Federal Board of Revenue in the shape of general sales tax.

The NEPRA chief also criticized power distribution companies over loadshedding and called for arranging fuel n an urgent basis to over power cuts.

According to the media reports, an official of the National Power Control Centre told the public hearing that about 18,500MW electricity was currently being produced, leaving a shortfall of about 3,500MW.

Earlier, the NEPRA notified the reduction in the electricity tariff by Rs5 per unit.

The regulator had allowed the Power Division to formally notify Rs5 per unit reduction in the rate of the electricity after former prime minister Imran Khan announced a reduction in the price of the electricity for all consumers except for the lifeline consumers as special relief.

The regulator had said that since the government had not sought any change in tariff determined by the NEPRA but had committed an Rs106 billion supplementary grant in the budget for four months at the rate of Rs26.5bn per month, the regulator had no objection to the discounted tariff.

Earlier, the Economic Coordination Committee (ECC) of the cabinet had approved an Rs136 billion subsidy for electricity consumers after the former prime minister announced an incentive package regarding the reduction in the price of electricity by Rs5 per unit.

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