Nepra defers its decision to increase power tariff by Rs2.97 per unit.

ISLAMABAD -- Nepra has deferred its decision on the petition of Central Power Purchasing Agency (CPPA) for Rs2.97 per unit hike in power tariff and directed the petitioner to provide justification for generating expensive electricity from furnace oil.

In a public hearing Nepra has directed CPPA-G to come up with more details regarding power generation from various power plants and justification for electricity generation from Furnace oil. The hearing on CPPA-G petition for fuel price adjustment for the month of September for Ex-Wapda DISCOs was presided over by Chairman Nepra, Tauseef H. Farooqi. NEPRA decided that the hearing on the petition along with fresh details will be held on next Tuesday.

By using expensive fuel (furnace oil) the exchequer was burdened with additional Rs7.2 billion, chairman NEPRA noted. He questioned that why electricity had not been generated from cheaper power plants. 'If we transfer the entire raise to the consumers it will be burden on our conscience,' Mr Farooqi remarked.

The Chairman NEPRA further questioned under what were the compulsions behind use expensive furnace oil for power generation. The regulator asked CPPA to provide plant wise details of power generation. Officials from CPPA said that merit order was followed during for power generation.

Central Power Purchasing Agency (CPPA) had proposed an increase of Rs 2.97 per unit, under fuel price adjustment, for the month of September for Ex-Wapda DISCOs.

According to the petition, submitted by CPPA with NEPRA, total energy generated in September was 13621 Gwh at a total price of Rs70.231 billion which is Rs 5.1560 per kWh. The net electricity delivered to power distribution companies was 13225.35 Gwh at cost of Rs76.886 billion or 5.8136 per kWh. Out of total electricity generation, losses stood at 2.91 per cent.

Since the actual cost of generation was Rs5.8136 per unit in the period under review against reference price of Rs2.8410 per unit therefore it has requested an increase of Rs2.9726 per...