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NEPRA approves another ‘tariff shock’ for one month

Updated 27 Jun, 2022
<p>A man uses battery powered light while working at a shop during a power breakdown in Karachi on May  16, 2018. Reuters/File</p>

A man uses battery powered light while working at a shop during a power breakdown in Karachi on May 16, 2018. Reuters/File

ISLAMABAD: The cost of electricity got more expensive on Monday, as the National Electric Power Regulatory Authority approved an Rs7.90 per unit increase in the electricity tariff under the fuel adjustment charges (a system designed to adjust monthly electricity fees based on fluctuations in fuel prices) for May.

“For God’s sake, don’t install plants on imported fuel,” NEPRA Chairman Touseef H Farooqi said while presiding over a hearing on the Central Power Purchasing Agency’s request for an Rs7.96 per unit increase in the power tariff.

The detailed order would be issued later. The decision will apply to all distribution companies (Discos) users except lifeline users. It will not apply to K-Electric consumers.

Earlier, Nepra had approved an Rs3.99 per unit increase in the electricity tariff under the fuel adjustment for April.

NEPRA chief Farooqi described the prevailing electricity situation as a “dead end”.

CCPA officials said that a significant increase has been seen in the fuel prices, adding that coal rates soared because of the Russia-Ukraine war. They added that it was “impossible” to purchase the expensive LNG cargoes in the prevailing situation. Cargo was also cancelled under the long-term agreement, they said.

NEPRA officials said that the CCPA has also sought Rs6.5 billion worth of amount in form of past adjustments.