The National Electric Power Regulatory Authority (NEPRA) has approved an increase of Re 53 per unit in the price of electricity for distribution companies.
A statement issued by NEPRA said, “NEPRA held an online hearing on the matter on January 27, 2021, in Islamabad and advertisements were also placed in the newspapers in this regard.”
According to the statement, representatives of Central Power Purchasing Agency (CPPA), National Power Control (NPCC), NTDC were present at the hearing while WAPDA Power Privatization Organization, Sui Southern Gas Company, Sui Northern Gas Pipeline. No representatives from the Ministry of Energy and the Ministry of Finance attended.
“NEPRA has approved the addition of fuel adjustment under Section 31 VII of the Amendment Act, 2011 of the Regulation of Generation, Transmission and Distribution of Electric Power Act,” the statement said.
“It has been approved in terms of fuel adjustment charges for December 2020,” the statement said.
According to NEPRA, the increase will be applicable to all customers except those using less than 50 units and the increase should be highlighted in the bills.
Consumers will have to pay additional charges in February 2021 bills which will be on a per unit basis in December.
It may be recalled that NEPRA had last month approved an increase of Rs 1.06 per unit for consumers as a monthly fuel adjustment for October and November 2020.
The report said the increase would cost the deficit-ridden energy sector Rs 8.4 billion.
The statement said that Discus had demanded an increase of Rs 1.53 per unit in the price of electricity, which was expected to raise Rs 12.5 billion.
The order issued after the hearing said that in general, the efficient power plants were not fully utilized and electricity was generated from expensive RFO and high-speed diesel (HSD) power plants resulting in Rs 2.011 billion. As a result, Rs 1.88 billion came to RFO and Rs 131 billion to HSDA account in October 2020.
NEPRA said the survey found that the EMO had claimed Rs 863 million from the total loss due to shortage of regasified liquefied natural gas (RLNG), technical shortcomings and non-use of efficient plants. Rupees are deductible.
The order said that after the approval of the fuel adjustment, an increase of 29 paise per unit is expected to raise Rs 2.9 billion in October and an increase of 77 paise in November to Rs 5.5 billion.
NEPRA had said that after transmission losses, DISCOS could have been supplied 7,235 gigawatt-hours at a cost of Rs 24.9 billion at Rs 3.35 per unit.
The documents showed that the largest share of the grid station was 31% of hydropower, an increase of 40% in November.