Electricity price likely to jack up by Rs 0.92 per unit

The government has started preparations to drop another electricity hike bomb on the people, with the electricity prices likely to witness an increase of Rs 0.92 per unit.

As per details, The Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA), after which electricity prices are likely to go up by Rs 0.92 per unit.

According to the CPPA, the increase in electricity prices is being done in terms of monthly fuel adjustment.

The petition filed by CPPA states that 7.72 billion units of electricity were generated in January. Power generation cost was Rs 51.66 billion, whereas, fuel cost on power generation was estimated at Rs 5.75 per unit. However, the cost was Rs 6 68 per unit, therefore, electricity prices should be increased.

NEPRA will hear the CPPA's request for a hike in electricity prices on February 25.

The electricity rates have witnessed a series of hikes in a matter of weeks, just days ago Nepra approved an increase of Rs 0.83 per unit in electricity prices.

NEPRA has issued a decision to increase electricity prices, which states that the increase in electricity prices was made on a quarterly basis and the increase in electricity prices was made in the context of adjustment for 2019-20.

Earlier, the Federal Government approved a massive increase in tariffs of Distribution Companies (Discos) - by approximately Rs 3.50 per unit, of which Rs 1.5359 per unit raise is for December 2020 under monthly fuel price adjustment mechanism and Rs 1.95 per unit raise in base tariff.