Proposed hike in electricity tariff rejected.

ISLAMABAD -- In a rare move, the National Electric Power Regulatory Authority (Nepra) on Wednesday put on hold about Rs3 per unit increase in electricity tariff for consumers of ex-Wapda distribution companies (Discos) under monthly fuel adjustment for lack of evidence.

At a monthly public hearing, Nepra Chairman Tauseef H. Farooqi said 'it would be a burden on our conscience if we pass on to consumers the entire expensive power generated on furnace oil,' when surplus capacity on cheaper fuels was available. The regulator directed the Central Power Purchasing Agency (CPPA) - the petitioner on behalf of all Discos - to provide justification along with evidence for generating expensive electricity on furnace oil.

It also called for plant-wise details of available capacity across the generation system and how the furnace oil-based plants made up to the economic merit order so that a fresh hearing could be conducted on Tuesday next.

Farooqi said the exchequer appeared to have been burdened with additional Rs7.2 billion because of utilisation of expensive fuel oil and questioned why the cheaper sources were not optimally utilised. 'We need to know the compulsion along with proof thereof for use of expensive furnace oil', he said.

The CPPA representatives told the regulator that merit order was followed during the month of September except where unavoidable due to system constraints and load balancing compulsions.

The CPPA had sought an...