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NEPRA raising electricity tariff by Rs3.09/unit to generate Rs26 billion from consumers

The net electricity supplied to Discos in December 2021 was 8,529.91 GWh with average rate of Rs 8.6573/unit, having total value of Rs 73.84 billion.

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has decided to enhance tariff of DISCOs by Rs 3.09 per unit for December 2021 to extort Rs26 billion from the electricity consumers in the name of monthly Fuel Component Adjustment (FCA). This increase in the cost of electricity, nevertheless, will not be applicable on consumers falling in the lifeline consumers category.

NEPRA and the Central Power Purchasing Agency- Guaranteed (CPPA-G) developed this understanding at a public hearing which NEPRA conducted on Feb 1, 2022. NEPRA Chairman Tauseef. H. Farooqi, Member Sindh, Rafique Ahmad Shaikh, Member Balochistan, Rehmatullah Baloch and Member KP, Maqsood Anwar Khan participated in the hearing.

The CPPA-G demanded positive adjustment of Rs 3.12 per unit for December 2021, based on its own calculations including impact of depreciation of rupee.

The CPPA-G claimed total FCA cost of Rs 72.761 billion for December 2021 against reference cost of Rs 40.720 billion, showing extra cost of Rs 32.042 billion. One of the reasons for additional cost was increase in international fuel prices.

For the coal, the impact was calculated at Rs 11.74 billion, HSD Rs 3.529 billion, RFO Rs 3.663 billion, gas Rs 4.176 billion, RLNG Rs 7.875 billion, nuclear Rs 923 million, Iranian electricity Rs 107 million, mixed Rs 17 million and baggasse Rs 5 million. Also, the CPPA-G demanded previous adjustment of Rs 2 billion.

Electrical substation

The cost of WAPDA hydel power was Rs 5.97/unit while hydel IPPs cost more than double, Rs 13.58/unit. There are total 23 hydel projects including Tarbela, Ghazi Barotha and Mangla dam.

The total energy generated was 8,827.05 GWh in December 2021 with a basket price of Rs 8.24/unit while the total cost of energy was Rs 72.76 billion.

The CCPA-G data showed the net electricity supplied to Discos in December 2021 was 8,529.91 GWh with average rate of Rs 8.6573/unit, having total value of Rs 73.84 billion.

Javed Mahmood
Written By

I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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