Nepra will decide on Oct 2 to raise power tariff by Rs1.86/ unit

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ISLAMABAD : Power tariff is expected to go up as the Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (Nepra) to jack up electricity rates by Rs1.86 paisa on account of fuel price adjustment. If granted, the increase in power rates will be for a month on account of fuel price adjustment for electricity consumed in August.

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The Nepra will decide on Oct 2 whether to raise power tariff or not. The CPPA moved a petition before the Nepra, stating that 40.33 per cent of total power generation came from hydropower plants, 13.34 per cent from coal-fired plants, 11.87 per cent from natural gas and 22.89 per cent from LNG-fired power plants. Whereas, 3.60 per cent of total power was generated from furnace oil and 4.66 per cent by nuclear plants. The Nepra had earlier on Sept 4 allowed an increase of Rs 1.78 per unit in power tariff on account of fuel price adjustment. The tariff hike was made on account of the fuel price adjustment in July. The hike was to put an additional burden of Rs 34.60 billion on electricity consumers, the power regulator said in a statement.

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The power regulator said that 32.53 % of electricity was generated from hydel while 14.33 % of power was produced from coal in the month of July. “11.81% was produced from local gas 24.51% from imported LNG. In July 5.50% power was generated from furnace oil,” the press release further adds. Meanwhile, The Petroleum Division of Energy Ministry Wednesday refuted a news item appearing in a section of the press about looming gas crisis in the upcoming winter, saying “the government is cognizant of managing and adequate provision of gas at the onset of the winter season.” Commenting on the issue, a spokesman of the PD has clarified that presently oil refineries were holding minimum stocks of furnace oil, which were being uplifted by oil marketing companies for power plants. “Petroleum Division in conjunction with the Power Division is constantly monitoring the furnace oil usage and stocks available in the country,” he said in a press release.

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He said the Petroleum Division was also aware of the fact that furnace oil consumption by power plants would considerably reduce in the forthcoming winter. “In this regard, Petroleum Division is in close coordination with all stakeholders including Power Division to utilize locally produced furnace oil for stock building at power plants and consumption of K-Electric.The spokesman said the Petroleum Division was engaged with exploration and production companies, refineries, Sui gas companies and Power Division to ensure optimal transportation, storage and utilization of all fuels by the various stakeholders.