CPPA, K-E seek hike in power prices

ISLAMABAD: The Central Power Purchasing Agency (CPPA) and K-electric have separately requested the National Electric Power Regulatory Authority (Nepra) for a price hike on account of the monthly fuel adjustment charges.

The Central Power Purchasing Agency (CPPA) has formally requested the National Electric Power Regulatory Authority (Nepra) for a price hike of Rs 1.88 per unit under the head of monthly fuel adjustment.

Nepra is scheduled to review the CPPA’s application on July 26.

Authorities reported that a total of 13.32 billion units of electricity were generated last month, with a production cost of Rs 125.18 billion. The request indicates that electricity generated from diesel costed Rs 30.45 per unit, while electricity generated from furnace oil costed Rs 26.09 per unit.

Additionally, electricity generated from liquefied natural gas (LNG) was priced at Rs 24.07 per unit, according to the request.

Meanwhile the K-electric has also sought Rs2.34 hike in the power tariff on account of the monthly fuel charges adjustment (FCA) for June in an application to the National Electric Power Regulatory Authority (Nepra).

The power utility has asked for an increase in the power tariff for Karachi consumers by Rs2.34/unit. the Nepra will conduct a hearing on the k-electric application on July 26.

Approval of the plea will put an additional burden of Rs4.39 billion on the consumers of Karachi.

Last week, the National Electric Power Regulatory Authority (Nepra) hiked the base power tariff by Rs4.96 per unit for the fiscal year 2023-24.

The authority forwarded its decision regarding the recommended hike in base power tariff to the federal government for final approval. The base tariff of the electricity will be increased from Rs 24.82 per unit to Rs29.78 per unit after the recommended hike.

The Nepra spokesperson said that the federal cabinet will decide whether the hike in power tariff will be implemented in phases or not.