ISLAMABAD (Eshfak Mughal) :- The National Electric Power Regulatory Authority (NEPRA) has increased electricity tariff by Rs.7.90 per unit or Rs.113 billion additional amount to be recovered from customers under the fuel price adjustment for the month of May 2022.

The Central Power Purchasing Agency (CPPA) had requested to increase the electricity tariff by Rs7.96 per unit for May under the fuel price adjustment.

Chairman NEPRA Tousif H Farooqi presided the hearing on the application of CPPA. Other members of NEPRA were also attended the hearing.

During the hearing, NEPRA was informed that the prices of fuel coal and LNG have been increased in international market. The prices of LNG in the international market were jacked up from $8 to $42 per within one year adding the LNG is not available for spot purchasing.

Due to the high cost of imported fuel, it is important to increase the use of local coal for power generation, the CPPA officials said.

Chairman NEPRA said that what is the reason for so much increase despite that the expensive fuel was used less during May? For God’s sake, do operate power generation plants on local fuel instead of imported fuel.

The Chairman said that two years ago, the NEPRA tried to give a tariff of Rs7 per unit to some renewable energy projects but CPPA had opposed and said that there is already a capacity trap and no more electricity should be generated.

If the CPPA had not opposed to those projects than the cheap renewable energy would have been available today in the country, Chairman NEPRA said. 

While responding to the chairman, the officials of CPPA claimed, no one knew what will happen after two years.

On the occasion, the Member NEPRA Sindh, Rafiq Shaikh said that the bad governance is the real problem of power sector which needs to be solved. 

Farooqi said that the authority can’t provide relief to consumers due to expensive imported fuel. “There are only two solutions, either load shedding or generating expensive electricity”, Chairman NEPRA said. 

Cheap electricity is possible only because of green fuel, he further said.

According to initial calculations of the NEPRA , the fuel price adjustment for May 2022, will be increased by Rs7.90 which will be added in the bill of July 2022. According to the estimate, the electricity consumers will pay additional Rs113 billion during one month. This increase will be only for one month.

This increase will not be applicable to the consumers of K-Electric and life line consumers.

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