CPPA requests NEPRA for another hike in electricity prices

ISLAMABAD: A request for an increase in electricity prices by Rs1.83 per unit has been requested by the Central Power Purchasing Agency (CPPA).

The request was heard by Chairman National Electric Power Regulatory Authority (NEPRA) Waseem Mukhtar at its Lahore headquarters.

The hearing was attended by NEPRA’s provincial members and officials from the CPPA.

The request, which calls for imposing an additional burden of Rs330 million on consumers in terms of government subsidies, is currently under review.

NEPRA has acknowledged the CPPA’s request but has refrained from making an immediate decision. “A detailed verdict will be issued following further examination of the data,” according to NEPRA officials.

Compared to last month, there has been an increase of Rs0.37 per unit in fuel costs this month. In September, the fuel cost adjustment stood at Rs1.46 per unit, while in October, the demand is for an adjustment of Rs1.83 per unit, raising questions over running power plants on furnace oil as per CPPA.

NEPRA REACTION

The comment was me by an angry outburst from NEPRA member from Khyber Pukhtunkhwa (KP) who argued that despite holding billions of funds from going to system operators, the issues have become perpetual. “Who will pay for your incompetence, the government, or the consumers?” he asked CPPA team.

CPPA maintained that more electricity has been generated using local coal this year as copared to last year during the month of August but it has seen a dip for the current month in a similar comparison.

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“Could we have produced more electricity from local coal if there had been improvements in the transmission lines?” asked a Sindh province member.

“If improvements are made in the transmission system, we can indeed generate more electricity from local coal,” responded a CPPA representative.

A member also revealed that five power plants are reportedly operating against merit orders, according to the member.