NEPRA approves ₹1.7141/unit tariff hike, adding ₹31 billion to October bills

The National Electric Power Regulatory Authority (NEPRA) has approved a tariff increase of ₹1.7141 per unit for ex-Wapda Distribution Companies (XWDiscos), following a petition from the Central Power Purchasing Agency Guarantee (CPPA-G). This adjustment will add an estimated ₹31 billion to consumer bills in October, according to information released on Friday.

The CPPA-G had initially sought a higher increase of ₹1.8290 per unit for August 2023’s Fuel Charges Adjustments, which would have amounted to a cost of ₹33 billion, inclusive of the General Sales Tax (GST). The actual fuel costs stood at ₹8.4746 per unit against reference fuel charges of ₹6.6447 per unit, setting the national average at ₹8.3598 per unit.

This tariff hike comes on the heels of previous adjustments by NEPRA. On Thursday, it was reported that the regulatory body had sanctioned a ₹1.71 per unit electricity tariff increase for XWDiscos affecting all consumer groups, with the exception of Electric Vehicle Charging Stations (EVCS) and lifeline consumers. This increase was reflected in the August 2023 bills and due in October that year.

Earlier, XWDiscos had lobbied for a ₹1.82 per unit increment while another increase was effected for July 2023 when NEPRA approved a substantial ₹3.28 (USD1 = INR83.219) per unit tariff boost for half a year. As with the current hike, these adjustments were separately itemized on consumers’ bills based on usage and billed accordingly.

The recent adjustments are part of NEPRA’s ongoing efforts to manage fuel costs and their impact on consumers and XWDiscos. These include considerations of revised costs from power plants such as Nandipur and claims involving Generation Company III (GENCO-III), Port Qasim, and Punjab Thermal. However, the regulatory body has consistently spared EVCS and lifeline consumers from these tariff increases.

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