CPPA Requests NEPRA to Increase Electricity Prices

The Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (NEPRA) to increase the price of electricity by Rs. 4.75 per unit. The request for an increase in electricity prices was made in the context of October’s fuel price adjustment (FPA), which will be heard on November 30. The Central Power Purchasing Agency’s request for an increase has been made for all electricity distribution companies except K- Electric, and if the request is approved, the burden of Rs. 61 billion will be shifted on the consumers. In October, the major chunk of electricity was produced from hydroelectric power plants, constituting 23 percent. Similarly, 23 percent of electricity was produced from imported RLNG, whereas 17 percent was produced from coal, 11 percent from RFO, local gas contributed to 10 percent of electricity generation, while nuclear energy contributed to 12 percent of the total 11296 GWh units produced. The total cost of electricity was calculated as Rs. 105 billion. K-Electric, on the other hand, has also requested NEPRA to increase the price of electricity by 29 paisas per unit, which will be heard on December 2 by the authority. Nepra recently increased baseline tariff for electricity consumers on the ministry of energy’s proposal, in line with IMF directions and agreement.