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Nepra hikes power tariff by Rs 1.77/unit

Posted on: Fri November 04, 2011

ISLAMABAD: Ahead of Eid-ul-Azha, the National Electric Power Regulatory Authority (NEPRA) has dropped a power bomb on the consumers by jacking up power tariff leading to hike Rs. 1.77 per unit electricity rates for the month of September, it was learnt.

National Electric Power Regulatory Authority, Thursday, while giving approval to increase in electricity rates by Rs 1.77 per unit has also expressed its annoyance over the purchase of electricity at Rs 42.57 per unit from Krakey Rental Power Plant in September by the Central power purchasing agency (CPPA), sources said, adding, that Nepra had also expressed its serious concerns over delay in the operation of Naudero-1 and Karkey rental power plants and sought details of penalties from the CPPA. The sources further informed that production cost of per unit hydel electricity was 13 paisa per unit, HSD Rs 18.02 per unit; Furnace oil Rs 14.81 and wind energy cost of production was found 11 paisas. Electricity purchased from Karkey rental power plant was Rs 42.57 per unit, sources added.

It was also learnt that Nepra determined fuel reference tariff Rs 3.86 per unit over the production of electricity for the month of September, however, real cost of fuel remained at Rs 5.67 so Nepra gave approval to this hike in a bid to adjust the fuel charges, resultantly Discos will collect a hefty amount worth of Rs 14 billion and 19 crores from the hard pressed consumers and the NEPRA had already hiked the power tariffs by Rs 5.08 for the months of July and August.

It is relevant to mention that Nepra conducted its proceeding under the chairmanship of Khalid Saeed after the request of the CPPA. During the proceeding, the CPPA briefed that 8 billion and 11 crore units of electricity was sold to the Discos during September. Fuel cost on this sold electricity was found Rs 46 billion and four crores. It was also informed that electricity generated with hydel was 749GWH, while with High-speed diesel 150GWH, with Furnace oil 2324 GWH, 1884 GWH from gas, with Nuclear 207.4GWH and with wing energy only 4 GWH electricity was generated during the said period of time.

According to National Electric Power Regulatory Authority (NEPRA), tariff of power distributing companies has been revved up under monthly fuel adjustment, as electricity to the tune of 8.11 billion units, was sold out to these companies during September.

It is important to say here that the recent hike is not applicable to Karachi Electric Supply Company (KESC) and lifeline users. It should be pertinent to note here that the CPPA pleaded the NEPRA to hike tariffs by Rs 1.80 per unit.

Analysts have said that this hike would add salt to miseries of over burdened consumers thus miseries to play. They were of the view that this hike would further escalate the inflation resultantly it would be difficult to the poor to meet both ends honorably. Further, consumers like poor will have to dig deeper into their pockets to earn just bread and butter.

Courtesy: THE NATION