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NEPRA: Approves Three-Phased Rs7.91 Hike In Power Tariff

July 23, 2022 by pescobill Leave a Comment

NEPRA  Approves Three Phased Rs7.91 Hike In Power Tariff

According to the NEPRA official the NEPRA is going to revise the base tariff by 7.91 in three phases respectively. The increase will be effect from July,200.  August 2022 and September 2022. Authority of NEPRA decided on Friday that Federal Govt give permission to increase in base tariff up to 24.82 per unit which is right now 16.91 per unit. The authority had earlier determined a rate hike and communicated its decision to the federal government, which proposed a flat rate for end consumers after including subsidies and surcharges. for all electricity distribution companies (DISCOs) and K-Electric.

The NEPRA chairman said during a hearing on Thursday that the authority has fixed the rate while maintaining the dollar rate at Rs 200, which has now reached Rs 226. “NEPRA’s job is to approve the rate while it is the government’s right to provide subsidy,” he added.
However, Power Division officials informed the authority that there will be no hike in tariffs for lifeline and protected category consumers and said the government will provide a subsidy of Rs 220 billion so that at least 50 per cent of consumers will not be affected by the latest hike.
It is important to note that earlier, after hearing, the authority had forwarded the decision to increase by Rs 7.9/unit to the power ministry and asked the government to issue a notification in this regard. The authority approved the increase due to increase in fuel prices, cost capacity and impact of rupee devaluation. Following the NEPRA decision, the Shehbaz Sharif-led coalition government also approved a huge incremental hike in the basic electricity price by Rs 7.91 per unit and directed the authority to take another step in this regard.
The tariff hike for FY23 has been set at Rs 24.82 per kilowatt hour (kWh) on a national average, up by Rs 7.9078 per kWh from the earlier fixed national average tariff of Rs 16.91 per kWh. from NEPRA.
According to NEPRA, electricity distribution companies (DISCOs) include Multan Electric Power Company (MEPCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO), Sukkur Electric Power Company (SEPCO), Quetta Electric Supply Company (QESCO). Peshawar Electric Power Company (PESCO) and Tribal Electric Supply Company (TESCO) submitted a multi-year tariff petition for FY21 to FY25, while Islamabad Electric Supply Company (IESCO), Lahore Electric Supply Company (LESCO) and Faisalabad Electric Supply Company (FESCO) submitted annual request for adjustment within the framework of the already permitted multi-year rate.
Power Purchase Price (EPP) is projected at Rs 1,152 billion, while capacity costs including NTDC and HVDC costs are projected at Rs 1,366 billion and total DISCO revenue requirements including DISCO margin and prior year adjustment (PYA) are projected at 2 Rs , 805 billion with projected sales of 113,001 GWh. Profit also noted that MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO & TESCO had earlier approved investments of around Rs 406 billion for their distribution investment program over five years, while sanctioned DISCOs reduced T&D losses from 13.46 to 11 .70 percent for FY23.

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