On Wednesday 31 August 2022, NEPRA approves Rs4.34 per unit hike in power tariff for July fuel adjustment on request of CPPA-G. The increase would be applicable for one month only.
Nepra says that this increase has been made to cover FCA for the month of July however the detailed verdict will be released later. The Central Power Purchasing Agency (CPPA) said in the petition that the production cost of electricity in July was Rs 10.98 per unit while the fuel cost was Rs 6.28 per unit.
Due to the violation of the merit order, there was a burden of more than 7 billion 42 crores and more than 6 billion 93 crores due to the shortage of LNG. Furthermore, 35.17 per cent of electricity was generated from water, 14.98% from imported LNG, 1.46 per cent from diesel and 6.42 per cent from furnace oil in July,12.74 per cent from coal, 10.36% of electricity was generated from domestic gas, and 14.20% from nuclear fuel, CPPA petition further stated.
The increase in electricity prices will burden the consumers with more than 35 billion rupees, expert says. However, Nepra says that this tariff hike is applicable just for one month and would apply to all electricity consumers except K-electric and lifeline consumers.