Another hike of Rs7.13 in power tariff expected for inflation-hit masses

In an apparent move to put more burden on already inflation-hit masses, the Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (Nepra) to hike the electricity tariff by Rs7.13 per unit.

The expected hike is attributed to the fuel cost adjustment (FCA) for the month of January.

If Nepra approves the hike, the additional amount will be added to the month of March.

The move came after a significant decline in hydropower production as power generation in January dropped by 2.4% against the same month of the previous year. However, in December 2023, power generation increased by 7.6%.

According to the petition, the generation cost increased to Rs13.79 per unit in January from Rs11.2 per unit. Similarly, the cost was Rs10.13 per unit in December.

In a petition, CPPA highlighted the cost charged by consumers in January was Rs7.48 per unit while the actual fuel cost was Rs14.621 per unit. 

The CPPA requested the authorities to shift the burden of the additional Rs7.13 charges to consumers. 

The distributor companies are also demanding a recovery of Rs2.568 billion in the account of FCA. 

Following the increase demanded by the CPPA, the consumers will have to bear the burden of Rs66 billion.