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Business & Finance

NEPRA approves electricity hike of Rs 0.89 per unit

  • The latest increase has been made on account of variations in the fuel charges for the month of January 2021.
Published March 9, 2021

The National Electric Power Regulatory Authority (NEPRA) has dropped another electricity bomb on the masses after it approved a hike of Rs 0.89 per unit in the price of electricity.

The latest increase has been made on account of variations in the fuel charges for the month of January 2021.

According to details, the NEPRA Authority had held a public hearing on February 25 on the Central Power Purchase Authority's (CPPA) request for an increase in electricity.

The Authority has gone through the information provided by CI'PA-G seeking monthly fuel adjustment and due diligence is done accordingly. From perusal of the information so provided by CPPA-G, the actual pool fuel cost for the month of January 2021 is Rs.6.6846/kWh, against the reference fuel cost component of Rs.5.7576/kWh as indicated in the Annexure-JY of the notified consumer-end tariff of Ex-WAPDA DISCOs for the FY 2017-18. The actual fuel charges, as reported by CPPA-G, for the month of January 2021 increased by Rs.0.9270/kWh (Annex-I) as compared to the reference fuel charges.

As per the data submitted by CPPA-G, XWDISCOs purchased 1.06 GWI-I from Captive Power Plants (CPPs) during January 2021, for which CPPA-G provided actual details of energy purchased from these plants. According to the details provided by CPPA-G, the actual fuel cost of this energy is Rs.5.3686 million. However, the same as per the NEPRA approved mechanism, works out as Rs.5.3685 million and the same has been considered while working out the FCA of January 2021.

The latest hike in rates shall be applicable to all the consumer categories except lifeline consumers. It shall be shown separately in the consumers' bills on the basis of units billed to the consumers in the month of January 2021. XWDISCOs shall reflect the fuel charges adjustment in respect of January 2021 in the billing month of March 2021.

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