The National Electric Power Regulatory Authority (NEPRA) has greenlit a power tariff increase of Rs7.056 per kilowatt hour for consumers of power distribution companies (DISCOs), excluding K-Electric. The hike, attributed to fuel charges adjustment (FCA), is slated to impact all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.
This adjustment will be reflected separately in consumers’ bills based on the units consumed in January 2024, with DISCOs incorporating the fuel charges adjustment in March 2024 billing cycles. The proposal for this increase came from the Central Power Purchasing Agency Guarantee Limited (CPPA-G), representing DISCOs, citing detailed fuel charges incurred in January.
CPPA-G recommended a Rs. 7.1308/kWh increase over reference fuel charges, amounting to Rs. 7.4894/kWh for January 2024. Notably, the actual electricity price already stood at Rs 14.6 per unit due to generation costs from high-speed diesel. During this period, hydel electricity’s share dropped to 11.12%, contributing 924 GWh, with diverse generation sources incurring varied costs ranging from Rs. 11.9213/kWh for hydel to Rs. 45.6066/kWh for HSD.
The country’s cumulative installed power generation capacity as of January 31, 2024, was 46,035 MW, comprising diverse sources such as thermal, hydroelectric, wind, solar, bagasse, and nuclear power. The closure of canals led to increased reliance on costly fuels like high-speed diesel to meet electricity demand.
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