Nepra fails to cut electricity tariff

The National Electric Power Regulatory Authority (Nepra) has failed to make a decision on tariff reduction as it heard an application from the Central Power Purchasing Agency (CPPA) to reduce the price of electricity by 20 paisas for the last quarters of 2020.

In case of approval, consumers will get a relief of Rs20 billion per month. However, the decision to reduce tariffs by 20 paisas per unit will not apply to K-Electric users.

During the hearing, CPPA officials said that various adjustments during April-June 2021 reduced the cost of production, but also said that the cost of electricity would increase in the next few months due to rising crude oil prices in the global market. It would increase the electricity cost, they said.

CPPA officials also informed in advance that electricity rates would increase by more than Rs2 per unit for one month next month for which an application would be made to NEPRA.