ISLAMABAD: NEPRA Completes Hearing on CPPA’s Request for 48 Paisa Increase in Electricity Prices under Monthly Fuel Adjustment Charges
The National Electric Power Regulatory Authority (NEPRA) has concluded the public hearing on the Central Power Purchasing Agency’s (CPPA) application seeking an increase of 48 paisa per unit in electricity tariffs under the monthly Fuel Charges Adjustment (FCA) for December.
CPPA informed the authority that power consumption rose by 22% compared to the previous year. In December last year, industrial consumers used 2 billion units of electricity.
However, due to the growing adoption of solar power, overall electricity consumption has been declining.
Industrial consumers strongly criticized the government’s long-term three-year relief package as insufficient and demanded an immediate end to cross-subsidy.
They argued that the current electricity rate for industry stands at 13 US cents per unit, offering little meaningful relief from the package.
They pointed out that monthly FCA increases would also apply to KE consumers, and that industry continues to bear cross-subsidy burdens while also paying interest on circular debt amounting to Rs3.23 per unit.
They emphasized that industrial consumption has not contributed to the rise in circular debt.
Representatives highlighted that electricity rates for industrial units in the region are around 5 US cents, while Pakistani industries are paying 13 US cents.
They urged the government to eliminate cross-subsidy, stating that doing so would bring the effective rate down to 9 US cents.
NEPRA has completed the hearing and stated that a final decision on the proposed FCA increase will be made after thorough verification and analysis of the submitted data.
Meanwhile, an increase in petroleum product prices appears likely in the upcoming review.
According to preliminary calculations shared by the petroleum industry with the Oil and Gas Regulatory Authority (OGRA), petrol prices may see a minor reduction of 36 paisa per litre.
However, significant hikes are proposed for other products:
- Diesel: Increase of Rs9.47 per litre
- Kerosene oil: Increase of Rs3.45 per litre
- Light Diesel Oil: Increase of Rs7 per litre
Sources indicate that OGRA will soon forward the complete working paper to the government.
The government retains the authority to adjust taxes and levies, which could reduce the net impact on consumers if reductions are applied in those areas.
The final decision on petroleum product prices will be taken after approval by the Prime Minister
