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CPPA proposes decrease in tariff

The Central Power Purchasing Agency (CPPA) has proposed to the National Electric Power Regulatory Authority (Nepra) to approve a reduction of 4.63 paisas per unit in its tariff for the month of August under the monthly fuel price adjustment (FPA), according to a statement on Saturday.

Nepra would hold a public hearing to consider the proposed increase on October 3, it said. The decrease in tariff, if approved, would be adjusted in the subsequent month bills.

Pursuant to the provisions of Section 31(4) of the Regulation of Generation, Transmission and Distribution of Electric Power Act 1997 and as per the mechanism for the monthly fuel price adjustment, Nepra reviews and revises the approved tariff on account of any variation in fuel charges on a monthly basis.]

As per the mechanism prescribed by the authority, CCPA is allowed monthly adjustment in fuel cost component on account of fuel price variation without taking into account the effect of transmission and distribution losses.

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