NEPRA likely to slash power tariff by 68 paisa

Dunya News

CPPA had requested a reduction of 61 paisa per unit in the price of electricity

ISLAMABAD (Dunya News) – Power tariff is likely to witness a decline of 68 paisa per unit as a result of fuel adjustment for the month of March.

National Electric Power Regulatory Authority (NEPRA) has completed hearing for reduction in the price of electricity for the month of March under fuel price adjustment and is likely to cut power tariff by 63 to 68 paisa per unit.

According to NEPRA, the Central Power Purchasing Agency (CPPA) had requested a reduction of 61 paisa per unit in the price of electricity, however, after hearing all the stakeholders, the authority indicated a reduction from 63 68 paisa per unit and the authority will issue a detailed decision after examining all the data.

Last month, the federal cabinet had approved the promulgation of an ordinance aimed at preparing a legal path to increase power tariff by a minimum Rs5.65 per unit from now till October to collect a whopping Rs884 billion from consumers.

It was the second emergency summary that the federal cabinet had approved through circulation to save the International Monetary Fund Programme from collapsing again.

The cabinet allowed further amending the Regulation of Generation, Transmission and Distribution of Electric Power Act, commonly known as NEPRA Act, through an ordinance.

The ordinance will give powers to the government to impose a new surcharge equal to 10% of the electricity revenue requirements or Rs1.40 per unit. In addition, the ordinance will give effect to implementing the Circular Debt Management Plan, approved by the cabinet.

The legal amendments have curtailed the federal government’s powers to notify increase in power tariffs. The law has given the right to Nepra, if the government does not increase tariff from 15 days in case of quarterly adjustments and one month in case of annual-base tariff increase.