Power tariff raised to recover Rs190bn under IMF deal
ISLAMABAD: Within a couple of days after federal budget announcement, the National Electric Power Regulatory Authority (Nepra) on Friday allowed a uniform increase of Rs1.494 per unit in tariff for all the distribution companies (Discos) of ex-Wapda to recover Rs189.64 billion from all consumers in line with a staff level agreement with the International Monetary Fund (IMF).
“The authority has determined a uniform rate of Rs1.4940/kWh for the allowed amount of quarterly adjustment of Rs189.638bn across each category of consumers of ex-Discos, to be recovered in 15 months period, based on projected sales for 2017-18, after excluding lifeline consumers,” said the regulator in its determination sent to the government for notification.
The government did not immediately notify the tariff adjustment. The government has been repeatedly asking Nepra to spread this additional revenue requirement over 24 months by allowing 95 paisa per unit increase in uniform rate. On the other hand, the distribution companies had been seeking Rs1.87 per unit increase in uniform rate to ensure full recoveries within a fiscal year.Consumers will pay additional Rs1.49 per unit for 15 months from July 1
Nepra, however, followed a middle path and allowed Rs1.494per unit increase in uniform rate to ensure recovery of Rs189.638bn in 15 months on the ground that higher international oil prices, inflation and currency devaluation could necessitate further price hikes and put consumers to a sudden higher price shock.
Source : Dawn News