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Power tariff to edge higher despite lower fuel costs

Power tariff to edge higher despite lower fuel costs

admin by admin
January 1, 2025
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Power tariff to edge higher despite lower fuel costs
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• CPPA seeks 63 paise per unit negative FCA in January against Rs1.14 in December
• Govt seeks early tariff rebasing, changes in peak hours

ISLAMABAD: The government announced on Tuesday that electricity tariffs for January 2025 will see a slight increase compared to December 2024, despite lower-than-expected fuel costs. The adjustment comes as part of an early rebasing of the national tariff regime and changes in peak and off-peak timings.

At a public hearing presided over by National Electric Power Regulatory Authority (Nepra) Chairman Waseem Mukhtar, the Central Power Purchasing Agency (CCPA) sought a negative fuel cost adjustment (FCA) of 63 paise per unit for November consumption.

It was explained that Rs1.14 per unit negative FCA applicable in December would be replaced by 63 paise negative FCA in January. Therefore, the “net increase for consumers would be 51 paise per kWh (unit)” in January.

Both Mr Mukhtar and Nepra’s tariff member Mathar Niaz Rana said the consumers were paying a heavy price for the inefficiencies of power companies. Mr Mukhtar grilled the public sector entities for an eight-month delay in the completion of Lahore-North grid facilities and mass­i­­ve underutilisation (in some cases 800 MW against 4,000 MW capacity or just 20pc ca­­pacity utilisation in November) of the Ma­­tiari-Lahore Transmission Line. Consu­m­ers pay full charges for the entire capacity.

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