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Monday, May 06, 2024  
28 Shawwal 1445  

Power companies ask for Rs2.94/unit increase in electricity price

NEPRA has reserved decision on the increase

The National Electric Power Regulatory Authority (NEPRA) has reserved its decision on a request by power distribution companies to increase electricity tariffs by Rs2.94 per unit. The proposed hike is based on the Fuel Price Adjustment for March.

During the hearing, NEPRA officials questioned the utilization of power plants, pointing out that cheaper plants were idle while expensive ones were operational. This practice, they argued, burdens consumers with unnecessary costs.

Chairman NEPRA presided over the hearing, where officials from the National Transmission and Despatch Company (NTDC) revealed that electricity consumption in March fell 8% below the projected target.

They attributed this to seasonal impacts on the north-south transmission system, increased production from hydel and nuclear sources, and the growing impact of solar power generation.

NEPRA member Rafique Shaikh noted that net metering and solar systems have been in place for the past three to four years, contributing to the changing energy landscape. Power Division officials reported a 7.5% overall decrease in electricity demand and the purchase of 55 million units of electricity through net metering.

NEPRA members emphasized the need for strategies to increase electricity demand, expressing concern over the reliance on expensive power plants. They stressed the importance of transparency in operations and urged officials to reveal the reasons behind the preference for costlier plants.

After hearing all arguments, NEPRA reserved its decision on the tariff hike request. Officials stated that the decision will be announced through a notification.

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