The Central Power Purchasing Agency (CPPA) on Saturday moved National Electric Power Regulatory Authority (Nepra) to raise power tariffs by Rs 3.06 per unit or 38 percent. The application to jack up power tariffs lodged with Nepra suggests that the higher rates must be retrospective ie from August.
According to Nepra sources during August CPPA sold 8,875 Giga Watts of power to distribution companies amounting to Rs 57.4 billion. The authority fixed reference fuel cost for August at Rs 3.60 per unit, but the actual fuel cost of producing one unit of electricity remained Rs 6.42 per unit, which is Rs 2.82 higher than the reference cost.
According to CPPA application to Nepra during August power production in the country through different sources was as follows: Hydro power generation 3,420 Giga Watts, Coal 9.96 Giga Watts, High Speed Diesel 152 Giga Watts, Furnace Oil 2991 Giga Watts, Gas 2120 Giga Watts and Nuclear power production 415 Giga Watts.
Power production through HSD costs Rs 18.31 per unit and through furnace oil Rs 14.84 per unit. Decline in gas and hydel based power generation resulted in increase of fuel charges. The public will have to face historic power tariff increase of 38 percent after the approval from Nepra expected in October with effect from August.
The government currently is confronting many serious issues relating to the economy; among them the most serious is the circular debt which currently stands at Rs 284 billion, of which the payables to gas companies are Rs 11.6 billion, oil companies Rs 9.9 billion, Rs 33.6 billion for 13 oil-based IPPs (Independent Power Producers), Rs 26.5 billion for 12 gas-based IPPs, Rs 69.1 billion for Hubco (on the basis of furnace oil (RFO), Rs 54.3 billion for Kapco (gas and oil based) bills, Rs 4.5 billion for IPPs (nuclear and SHYDO), Rs 14.4 billion for Rental Power Plants (RPPs), Rs 60 billion for Wapda hydel and Rs 79 billion under other heads.
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