The National Electric Power Regulatory Authority (NEPRA) has approved to increase the price of electricity by Rs 3.21 per unit. According to Nepra, the quarterly adjustment of electricity price till April 2022 will impose an additional burden of Rs 93 billion 95 crore 70 lakh on the consumers.
Nepra said that the increase in electricity price will be applicable from October 1, 2022. The increase of 3 rupees 21 paise per unit will be collected in the form of installments in 4 months. It will not be on K-electric customers. Moreover, NEPRA sent the decision to increase the price of electricity in the quarterly adjustment to the federal government.
Reduction in FCA
The NEPRA said the reduction in FCA (fuel cost adjustment) would be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, agriculture consumers and EVCS (Electric Vehicle Charging Station).
The power sector regulator conducted a public hearing on September 29. During the hearing, the issues raised pertained to whether the requested fuel price variation was justified. Also, whether KE had followed the merit order while giving dispatch to its power plants.
Induction of cheaper energy sources
The authority, during the hearing, noted that the cost of KE’s own generation was around three times higher than the cost of energy it purchases. Upon inquiry, KE explained that it has prepared a detailed plan for the induction of cheaper energy sources, including renewables. KE submitted that it plans to induct 1,182 MWs of renewables by 2030. Earlier in September, the National Electric Power Regulatory Authority (NEPRA) approved dropping the power Tariff for K-electric consumers by Rs4.87 per unit.
