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Nepra increases power tariff by Rs1.51 per unit

Despite prolonged power outages the National Electric Power Regulatory Authority (Nepra) has increased the power tariff by Rs1.51 per unit under the monthly fuel adjustment mechanism. Lifeline consumers, however, would be exempted from this raise and the decision will also not apply to the consumers of KESC.

Nepra held a hearing here on Wednesday on the petition of the Central Power Purchase Agency (CPPA) seeking raise in power tariff under fuel adjustment mechanism against the fuel cost incurred on electricity generation during the month of May. CPPA had sought Rs1.52 per unit increase in tariff.

CPPA officials told the meeting that the fuel cost for electricity generation for the month of May remained Rs8.06 per unit, whereas the referencefuel cost for the month was Rs6.54 per unit. In May, CPPA sold out 7.37 billion electricity units to electric power distribution companies. The generation cost of 7.37 billion units stood at Rs59.42 billion.

In May, the share of hydrogenation in electricity mix remained at 29.16 percent, coal electricity 0.4 percent, electricity from high speed diesel 1.07 percent, from furnace oil 34.46 percent, from gas 28.20 percent, nuclear 5.85 percent, wind 0.1 percent and Iranian electricity 0.34 percent. Furnace oil was purchased at Rs72000 per ton, which was used for thermal power generation whereas the reference price of furnace oil in May was Rs65000 per ton.

During the hearing, Shaukat Ali Kundi, member Nepra, expressed his dismay over seeking Rs49 million in the head of fuel cost for electricity generation by Saifair power plant before its commercial operational date (CoD) and said that seeking fuel cost before the CoD is illegal under the agreement, as during the testing of the plant no one could claim the fuel cost against electricity generation.

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