NEPRA Hikes Power Tariff By Rs. 7.90 Per Unit

In accordance with the fuel price adjustment (FPA) for May 2022, the National Electric Power Regulatory Authority (NEPRA) has increased the power cost by Rs. 7.90 per unit.

Under the fuel price adjustment, the Central Power Purchasing Agency (CPPA) has asked for a rise in the power rate of Rs. 7.96 per unit for May. The hearing on the CPPA application was presided over by Tousif H. Farooqi, Chairman of NEPRA. The hearing was also attended by additional NEPRA members.

NEPRA was informed at the hearing that the cost of LNG and fuel coal had gone up on the global market. Within a year, the cost of LNG on the international market increased from $8 to $42, and it is no longer possible to buy LNG on the spot market. The CPPA officials stated that it is critical to enhancing the use of domestic coal for power generation due to the high cost of imported fuel.

Chairman NEPRA enquired as to the cause of such a significant rise given that less costly gasoline was used in May.

The Chairman recalled that previously, the NEPRA attempted to provide certain renewable energy projects at a pricing of Rs. 7 per unit, but the CPPA had objected and said that there was already a capacity trap and that no additional power should be produced. According to Chairman NEPRA, if the CPPA had not rejected those projects, the nation would currently have access to affordable renewable energy.

The CPPA officials argued that no one knew what would happen after two years in response to the chairman. Rafiq Shaikh, a member of NEPRA Sindh, stated that the actual issue facing the electricity industry is poor governance, which has to be addressed.

In response, Chairman NEPRA stated that because imported petroleum is so expensive, the government is unable to offer relief to customers. The Chairman of NEPRA stated that there are only two options: load shedding or the production of costly power. He said that the only reason cheap power is conceivable is because of green fuel.

The gasoline price adjustment for May 2022 will increase by Rs. 7.90 and be added to the bill for July 2022, based on the NEPRA’s preliminary estimations. The projection states that extra charges for power users will total Rs. 113 billion in a single month. This price rise will last for one month. Lifeline customers and K-Electric customers will not be affected by this hike.

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