Categories: Business

Rs6.10 per unit raise in electricity price sought

ISLAMABAD (NNI): The electricity tariff is feared to go up massively as the Power Division has sought Rs6.10 increase per unit in connection with fuel adjustment charges for the month of January.
The Central Power Purchasing Agency (CPPA) has sought the raise in electricity price and the National Electric Power Regulatory Authority (NEPRA) will take up its request on February 28.
According to details shared by CPPA, electricity was produced from wind energy at Rs2.22, hydel power at Rs5.83 per unit, diesel at Rs6.73 per unit, LNG at Rs7.12 per unit, furnace oil at Rs14.07, local gas at Rs14.37 per unit, nuclear power at Rs14.37, and coal at Rs33.15 per unit.
The energy ministry of Pakistan has recently hiked electricity tariffs by Rs1.95 per unit which it claimed is due to a hefty circular debt thanks to previous governments.
“We could jack the electricity prices by Rs2.18 per unit but we did not want to “burden the masses” so we only increased 23 per cent in tariff, said the federal minister for energy Omar Ayub in a joint presser today accompanied by federal planning minister Asad Umer and Prime Minister’s aide on energy Tabish Gauhar.
Ayub said the incumbent government has inherited the circular debt crisis for which it is binding on it to hike the tariffs and translate the impact on the masses. Due to the heavy debts in the energy sector, which he termed a minefield, we had no other option but to expedite clearing off the payables, he said.
On the recent countrywide power breakdown, the minister said it happens everywhere in the world, adding that everyone praised how soon we recovered from it.
It is due to the destructive energy sector agreements made in Pakistan Muslim League – Nawaz tenure that our energy production is 43 pc more expensive than it should be, he claimed.

The Frontier Post

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