NEPRA to Decide on CPPA’s Plea for Rs5 per Unit Hike in Base Tariff

 NEPRA to Decide on CPPA’s Plea for Rs5 per Unit Hike in Base Tariff

ISLAMABAD: Power consumers are bracing for another potential increase as the National Electric Power Regulatory Authority (NEPRA) is set to review the Central Power Purchasing Agency’s (CPPA) request for a Rs5 per unit hike in the base tariff. This move could impose an additional burden of over Rs310 billion on electricity consumers.

NEPRA is scheduled to decide on the CPPA’s plea for the fiscal year 2024-25 tomorrow. The CPPA has submitted seven scenarios for power purchase prices, ranging from Rs25.03 to Rs27.11 per unit. If approved, the total burden of power purchase prices is expected to reach Rs3.58 trillion, significantly impacting consumers.

In a related development, power consumers are also likely to face a significant increase of Rs3.49 per unit due to fuel charges adjustment (FCA) for April 2024. The CPPA, on behalf of power distribution companies (DISCOs), submitted an application to NEPRA requesting this increase. NEPRA has scheduled a public hearing on May 30, 2024, to discuss the FCA adjustment, which, if approved, will be reflected in consumers’ June bills.

The power sector in Pakistan is grappling with a soaring circular debt, which reached Rs2,635 billion by January 2024. Despite substantial increases in power tariffs and fuel adjustments, the circular debt continues to rise. A report from the power division noted that the circular debt increased from Rs2,310 billion in June 2023 to Rs2,635 billion by January 2024, marking a Rs325 billion increase over seven months.

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