ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday dropped another inflation bomb on the poor masses by notifying a hike of Rs2.38 per unit under the head of the monthly fuel adjustment.
This is the second such rise in power prices in a row as the Ministry of Water and Power had earlier notified a 16 percent increase in the power tariff on May 16. With the latest raise in power tariff, electric power distribution companies will now be able to fleece an additional Rs26 billion from the poor consumers.
According to the notification of the electric power regulator, the power tariff for the month of February has increased by Rs0.59 per unit and for the month of March by Rs1.79 per unit. Consumers of electric power distribution companies will have to make an extra payment for electricity generated on the fuel in the months of February and March.
Under the notification, lifeline consumers of nine Discos consuming 50 units in a month and KESC will be exempted from the impact of the notified decision of the power regulator. Discos will charge additional raises in power tariff from the consumers against the fuel used during February to September and the fuel used during March to October this year.
The Central Power Purchase Agency (CPPA) sold electricity valued at Rs11.50 billion to Discos in the months of February and March. Member Nepra from Khyber Pakhtunkhwa Shaukat Kundi said in his additional note that the Northern and Central Jamshoro power generation companies had inflicted a huge loss of Rs25.87 billion on the national kitty during 2007-09 because of the wastage and theft of furnace oil used in the power houses to generate electricity. Kundi said Nepra has refused to pass the impact of Rs25.87 billion on to the consumers. However, the government, as the 100 percent owner of Gencos and Discos, is paying a huge subsidy to them from the national exchequer.
Nepra had asked the Gencos to reduce their inefficiencies, but they didn’t pay heed to the directives. Kundi has said the Gencos, despite the orders of Nepra, had not inked fuel purchase agreements.