The National Electric Power Regulatory Authority (NEPRA) authorized an increase in the price of energy by Rs. 7.91 per unit on Thursday and issued a notice to that effect.
The per-unit price of power has been raised from Rs. 16.91 to Rs. 24.82, representing a 47 percent rise.
According to NEPRA, the price rise is due to an increase in fuel costs as well as an increase in the cost of manufacturing. The increased tariffs would take effect in July 2022, subject to government approval, according to the announcement.
The firms had submitted multi-year tariff requests for FY 2020-21 to 2024-25, according to NEPRA’s ruling for X-Wapda distribution companies (DISCOs).
Under the previously approved multi-year tariff, Islamabad Electric Supply Company, Lahore Electric Supply Company, and Faisalabad Electric Supply Company submitted yearly adjustment/indexation petitions.
According to NEPRA, the rate for FY 2022-23 has been set, which is Rs. 24.82 per unit (kWh) on a national average, which is Rs. 7.91 per unit more than the previously determined national average tariff of Rs. 16.91 per kWh.
According to the announcement, the rise of Rs. 7.91 per unit kWh is mostly due to increases in fuel prices, capacity costs, and the effect of rupee (PKR) depreciation. According to NEPRA statistics, the Energy Purchase Price (EPP) is expected to be Rs. 1,152 billion, while capacity charges, which include NTDC costs, are expected to be Rs. 1,366 billion.
With planned sales of 113,001 Giga Watt Hour, the total revenue need of XWDISCOs is estimated to be Rs. 2,805 billion, including DISCOs margin and Prior Year Adjustment (PYA) (GWh).
MEPCO, GEPCO, HESCO, SEPCO, QESCO, PESCO, and TESCO have been granted a Rs. 406 billion investment for their 5-year distribution investment programme.