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New blow to power consumers: pay Rs1.33 more per unit

The National Electric Power Regulatory Authority (Nepra) has dealt another blow to power consumers by raising the power tariff by Rs1.33 per unit under the fuel adjustment mechanism.

The regulatory body approved this hike in tariff during the hearing held here on Tuesday on a petition of the Central Power Purchase Agency (CPPA).

During the hearing, the CPPA came up with the argument in favour of increasing the power tariff that the regulator had fixed the reference price of fuel cost at Rs7.59 per unit in December 2012, but the fuel cost incurred on generating the electricity remained at Rs8.95 per unit. In the wake of a decline in hydro generation, theCPPA had to increase its reliance on generating more electricity from furnace oil and high-speed diesel.

In December it paid Rs2.4 million to HUBCO as bonus, and Rs50.50 million in the head of partial load adjustment charges, and Rs390.10 million to KAPCO in the head of fuel difference charges.

However, Nepra mentioned that the CPPA sold 6.330 billion units of electricity in December to electric power distribution companies (Discos) on which the fuel cost incurred was Rs55.8250 billion. The CPPA responded to Nepra arguing that transmission loss had increased by 0.61 percent to the limit fixed by the regulator owing to which the system had faced an additional loss of Rs340.30 million.

According to Nepra, the Islamabad High Court has already barred the government from charging the fuel adjustment surcharges. The notification in terms of raise in power tariff will be issued once the Islamabad High Court will give its detailed verdict.

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