Karachi: The National Electric Power Regulatory Authority (Nepra) has notified a PkR 6.436 per unit increase in power tariff of Distribution Companies (Discos) for four months (Oct 2011 to Jan 2012) under monthly fuel adjustment formula.
According to Alfalah Securities Limited, the fuel cost charges component for October 2011 is estimated to be higher by PkR 2.1267/kWh to PkR 6.8413/ kWh where the increase will be applicable to all the consumer categories except lifeline consumers of all Discos and will be charged in June 2012. Increase in power tariff for November 2011 has been calculated at PkR 1.1701/kWh as actual fuel charges component for the month were Rs 6.1947/kWh and this increase will be charged in the bills of July 2012. Similarly, fuel charges increase of PkR 0.8653/kWh for December 2011 will be charged in the bills of July 2012 and the fuel charges of PkR 1.8715/kWh for January 2012 which will be charged in the bills of August 2012.
As per the local newspaper, the power tariff will be increased up to 15% as Nepra has already revised furnace oil base price from Rs 45,000 per ton to Rs 67,000 per ton. Currently, base tariff is PkR 7.49 per unit which will jump to PkR 9.96 per unit after inclusion of PkR 1.71 average increase on account of fuel variation. However, the base tariff will be set at Rs 8.2 per unit after the government accepts base price of furnace oil at Rs 67,000 per ton as recommended by the regulator. The hike power tariff is aimed at raising funds to meet the obligation in lieu of circular debt however; it would on the other hand erode the purchasing power of the masses due to heating up of inflation.