The Central Power Purchasing Agency (CPPA) on Sunday has moved the National Electric Power Regulatory Authority (Nepra) for making an increase in electricity tariff.
Under the November fuel adjustment, the CPPA requested a Rs.4.33 per unit increase in power pricing. The electricity cost increased by Rs4.74 per unit last month.
The appeal will be heard on December 29 by the regulatory authority. If Nepra allows CPPA to raise the tariff, consumers will be hit with a bill of more than Rs40 billion.
According to the CPPA, water created 33.21 percent of electricity in November, coal 16.26 percent, and furnace oil 1.71 percent, while local gas generated 12.89 percent and imported LNG 14.25 percent, and nuclear fuel generated 17.51 percent..
The government has approved more reductions in subsidies in order to meet the World Bank and International Monetary Fund’s requirements. It will raise electricity costs by up to 95 paisa per unit immediately.
The Cabinet’s Economic Coordination Committee accepted the plan to remove subsidies and approved a Rs5.8 billion payment to Nishat Chunian Power Plant under a deal reached with independent power producers (IPPs). The loss in subsidy will essentially raise residential electricity bills by 53 paisa per unit.
According to Ministry of Energy papers, the effective tariff for consumers using up to 100 units would increase by 8 paisa per unit, for consumers using 200 units, prices will climb by 18 paisa, and for users of 300 units, prices will increase by 48 paisa. They indicated that the effective tariff for consumers utilising 301-700 units will increase by 95 paisa per unit.
The new approved effective rate for consumers purchasing up to 100 units will be Rs9.5 per unit, Rs10.36 per unit for consumers purchasing 200 units, Rs12.62 per unit for consumers purchasing 300 units, Rs15.73 for consumers purchasing 400 units, and Rs17.19 for consumers purchasing 500 units. Users of 600 units would pay Rs18.11 per unit, while users of up to 700 units will pay Rs18.75 per unit.
