Power tariffs likely to go up as new year rolls out

• Power distributing companies approach NEPRA for increase in power tariffs. 
• Potential tariff increase will put an additional burden of Rs17.85 billion. 
• NEPRA will hear plea on January 12.

Following a hike in the prices of petroleum products on the first day of the New Year, power tariffs are again going to witness an increment as power distribution companies have moved the National Electric Power Regulatory Authority (Nepra) to increase the tariffs, Geo News reported Sunday.

Earlier, on December 9, 2021, Nepra had increased tariffs by Rs4.74 per unit under monthly fuel adjustment charges.

The price of electricity had already soared by an average of Rs2.64 per unit in July under the adjustments for August, September and October. A decision is still pending on an appeal of a Rs4.33 per unit adjustment for November.

The power regulatory authority is all set to hold a hearing on January 12.

The Nepra has been sought to shift an additional burden of Rs17.85 billion onto consumers in terms of capacity charges and transmission losses. Power distribution companies sought a burden of Rs5.72 billion to be passed on to consumers under capacity charges as there was electricity in the system but was not utilised.

The power regulatory authority has also been requested to pass more than the amount worth over Rs9 billion over to consumers under transmission/line losses. Moreover, power distribution companies have demanded Rs1.95 billion under the use of system charges.

On December 31, the NEPRA had approved a 99 paisa per unit cut in power tariffs for the 4th quarter of the last fiscal year under a quarterly adjustment mechanism. The price cut will grant a Rs22.48 billion relief to the consumers, except K-Electric users.

Power companies use the mechanism of fuel adjustment charges to recover the difference in fuel cost.