NEPRA will review the CPPA’s request for a Rs1.73 per unit increase under the August fuel price adjustment mechanism.
ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has received a request to increase electricity prices by Rs1.73 per unit under the monthly fuel price adjustment mechanism for August.
The Central Power Purchasing Agency (CPPA) has submitted the application to NEPRA, seeking an adjustment based on changes in fuel costs incurred during electricity generation in August.
According to NEPRA officials, a hearing on the request has been scheduled for Sept. 29. During the hearing, the regulator will review the details and costs submitted by the power purchasing agency before deciding whether the proposed adjustment should be approved.
If approved, the requested adjustment could place an additional financial burden of around Rs29.5 billion on electricity consumers across the country.
The proposed increase is linked to fluctuations in fuel costs associated with electricity generation during the month under review. The monthly fuel price adjustment mechanism is used to account for changes in generation costs, with the resulting adjustments subsequently reflected in consumers’ electricity bills.
Under the existing government policy, the impact of the fuel price adjustment would apply to electricity consumers across the country, including consumers in Karachi.
However, the final amount payable by consumers will depend on NEPRA’s decision following the Sept. 29 hearing. The regulator will examine the figures, fuel costs and other relevant details submitted by the CPPA before determining whether the requested increase is justified and what adjustment, if any, should be passed on to consumers.
The proposed Rs1.73 per unit increase is therefore not yet a final tariff decision. NEPRA’s determination after the hearing will establish the actual impact on electricity consumers.
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