As part of the monthly fuel adjustment, the National Electric Power Regulatory Authority (NEPRA) on Tuesday decided to reduce the price of electricity by 32 paisas per unit rather than raising the tariff by 24 paisas as requested by the Central Power Purchasing Agency (CPPA).
This was decided on Tuesday during a hearing on fuel adjustment charge for October. The meeting was held on the request of CCPA under the chairmanship of Nepra Chairman Tauseef Farooqi.
At the hearing, CPPA officials were argued that the rates being charged for electricity consumers for fuel charge adjustment (FCA) should be increased by 24 paisas per unit .
They continued by stating that in October, electricity worth Rs10.37 billion was generated. Out of which, the upfront expense was Rs9.17 per unit while the cost of producing power was Rs9.41 per unit, a difference of 24 paisas.
However, expressing dissatisfaction over the arguments presented, Nepra officials claimed that the consumers had already been overburdened when they were charged an additional Rs330 million from them due to a violation of the merit order.
Of this, some Rs25.98 million was collected due to the shortage of Liquefied Natural Gas (LNG) – a key raw material to produce electricity in Pakistan at gas fired power generators – which had left an additional burden of a cumulative Rs40 billion on the consumers over the past three years.
Citing the additional burden on consumers, Nepra concluded the hearing by deciding to reduce the fuel adjustment charge by Rs0.32 per unit for October.
It is pertinent to note that the decision will not be applicable to lifeline, household and electricity customers consuming up to 300 units per month.