Power tariff likely to see another hike of Rs4.33 per unit

• NEPRA receives request for increase in power tariff from Central Power Purchasing Agency.
• Authority to conduct a hearing on request on December 29.
• Electricity consumers to bear an additional burden of Rs40bn in case NEPRA approves suggested hike.

ISLAMABAD: The power tariff is likely to witness a hike of Rs4.33 on account of fuel charges adjustment as the National Electrical Power Regulatory Authority (NEPRA) received a request for the increase from Central Power Purchasing Agency (CPPA), The News reported Monday.

The report stated that NEPRA will conduct a hearing on the request on December 29.

The CPPA has stated in the application that 8.24 billion units of electricity had been generated in the month of November with a cost of Rs66 billion.

"Diesel and furnace oil generated the most expensive electricity, costing Rs20 to Rs27 per unit, and LNG generated electricity, costing Rs17 to Rs20 per unit."

It further stated that Pakistan also imported electricity from Iran at a rate of Rs13 to Rs35 per unit price. On the line losses, electricity of Rs20 was used.

The electricity consumers would have to bear an additional burden of Rs40 billion on account of an increase in the power tariff in case NEPRA approves the hike requested by CPPA.

NEPRA approves Rs1.68 increase in per unit price of electricity

NEPRA had last approved a hike in the electricity prices at the beginning of November, announcing an increase of Rs1.68 per unit of electricity.

The notification issued for the hike had stated that the increased rates will not be applicable to those who consumed 200 or fewer units of electricity.

According to the statement, the recent increase has been made in the basic tariff under which the price per unit of electricity has been increased by Rs1.68 for domestic consumers, while for commercial and other categories, the price per unit of electricity will be Rs1.39.

The new rates will come into effect across the country from November 1, which will earn the country revenue of Rs135 billion per annum, read the statement.

Govt warns of electricity price hike in coming months

Later in the month, Federal Minister for Energy Hammad Azhar, during a press conference flanked by Finance Minister Shaukat Tarin, had mentioned that the basic electricity prices will be increased in the coming months.

"These are difficult times and people around the world are facing problems due to COVID-19," he said, adding that inflation around the world is at its 30-year high level.

Endorsing his views, Tarin stated that the international financial institutions appreciated Pakistan's economic growth during the pandemic.

The adviser was of the view that the monetary policy should be free.

"Petroleum development levy should be increased by Rs4 per litre every month," he said, adding that the government aims to take the petroleum development levy up to Rs30.

He further mentioned that the IMF acknowledged the tremendous work done in the energy sector.