PESHAWAR: The National Electric Power Regulatory Authority (NEPRA) on Wednesday approved to increase electricity price by Rs2.51 per unit in terms of monthly fuel adjustment.
According to details, a hearing was held in NEPRA office on the request of the Central Power Purchase Agency (CPPA) regarding fuel price adjustment in September. In response to a query from NEPRA officials, the Additional Secretary Power Division said that the demand for electricity has increased by 7% in September. The secretary said that there are obstacles in the supply of LNG and demanded four months of LNG till January and furnace oil for power generation till February.
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After the hearing, the NEPRA has approved an increase of Rs2.51 paise per unit in electricity prices. In August, the electricity price was increased by Rs1.95 per unit in term of Fuel Charge Djustments (FCA). The NEPRA said that the recent increase will not apply to Lifeline and K-Electric customers. The consumers will have to pay the recent increase in in the next month’s bills.
During the hearing, Vice Chairman NEPRA said that the electricity rates have been increased due to rising petroleum prices. The CPPA summary said that 15 billion units of electricity cost Rs106 billion last month while 20 paise per unit line losses were recorded. The summary said that government, last month, produced the most expensive electricity in country’s history on diesel.
The CPPA said that the electricity was produced at Rs22.62 per unit with diesel while the cost of generating electricity from furnace oil was Rs18.24 per unit. Similarly, electricity was generated on LNG at Rs13.44 per unit. After the approval of the summary is approved, consumers will be burdened with Rs25 billion in the next month’s bill.