Achi news desk-
ISLAMABAD: Electricity consumers are set to get another “shock” as the National Electricity Regulatory Authority (NEPRA) is set to accede to CPPA’s request seeking a Rs5 per unit hike in the base tariff, ARY News reported.
Preparations are being made to impose an additional burden of over 310 billion rupees on electricity consumers.
According to the details, the electricity regulator will decide tomorrow on the request of the Central Power Purchase Agency (CPPA), which seeks to increase the base tariff for FY2024-25.
CPPA presented seven scenarios for power purchase prices, with an estimated range of Rs 25.03 to 27.11 per unit.
After the approval, the burden of electricity purchase prices is expected to reach 3.58 trillion rupees, which will place an additional burden on electricity consumers.
Read: Pakistan’s power sector’s circular debt soars to Rs 2.63tlr
Yesterday it was reported that electricity consumers are expected to face a significant increase in the rate of 3.49 rupees per unit due to the fuel charge adjustment (FCA) for April 2024.
On behalf of the Electricity Distribution Companies (DISCOs), the Central Power Purchase Agency (CPPA) has submitted an application to the National Electricity Regulatory Authority (NEPRA) seeking to increase the electricity tariff by Rs 3.49 per unit.
Following this request, NEPRA scheduled a public hearing on May 30, 2024. If approved, this adjustment will be reflected in consumers’ June bills.
It is worth mentioning here that the circular debt of Pakistan’s power sector has jumped to Rs 2,635 billion by January 2024.
According to a report published by the Electricity Division, the increase in debt continues despite the massive increase in electricity rates and fuel adjustments.
The increase in circular debt was recorded at 2,310 billion rupees by June 2023, showing an increase of 325 billion rupees during the seven months (January 24).
