Karachi, May 30, 2012 (PPI-OT): The National Electric Power Regulatory Authority (Nepra) has raised power tariff by PkR 1.97 per unit for distribution companies (Discos’) for the month of April 2012 and PkR 0.70 per unit for Karachi Electric Supply Company’s (KESC) consumers except for lifeline consumers under the mechanism of Fuel Price Adjustment (FPA).
According to Alfalah Securities Limited, tariff hike for KESC is over and above the hike of PkRs 1.12, PkRs 0.21 and PkRs 0.32 per unit made by Nepra on May 28, 2012. Alfalah Securities Limited believes, an increase in the power tariff would boost inflation across the board and would add to the woes of consumers since they are already facing severe power shortfall and increased power outages, which has disturbed their day-to-day business activity.
According to a local newspaper, NEPRA would also be conducting a public hearing on June 14, 2012 where it would initiate an Authority Proposed Modification (APM) in the licenses of generation companies (Gencos) for retiring their generation units which have operated longer than their useful life and have lost efficiency. It is due to the lost efficiency, these generation units incur higher fuel cost and cause greater purchase cost of electricity for Central Power Purchasing Agency (CPPA) which ultimately raises power tariffs. These obsolete generation units includes three units of Northern Power Generation Company Limited (NPGCL), two units of Central Power Generation Company Limited (CPGCL) and two units of Jamshoro Power Generation Company Limited (JPGCL). The discontinuation of electricity generation from these power units is likely to put a stop to power tariff hikes being made every month by Nepra.