The Central Power Purchasing Agency has applied for an increase of Rs 36 paisa per unit in the price of electricity.
According to the details, the request for increase in electricity price has been submitted for September in terms of monthly fuel adjustment. In September, the reference fuel cost of electricity was Rs 2.84 per unit. The increase in the price of electricity will impose an additional burden of Rs 53.56 billion on consumers. NEPRA will hold a hearing on the CPPA request on October 29 in Islamabad.
On the other hand, NEPRA termed the existing power system as flawed. NEPRA has released State of Industry Report 2020 on Power Sector. According to the report, non-operation of power plants at full capacity has created expensive electricity. The report revealed that the reduction in the receipts of the power companies has created expensive electricity.
NEPRA said that the recovery rate declined by 1.48% in the financial year 2019-20. The power sector suffered irreparable damage due to Coronavirus pandemic. NEPRA once again called the power transmission system faulty. NEPRA said that consumers’ confidence in power companies was declining due to load shedding. Electricity consumers are attracted to net metering. NEPRA called for reducing the cost of power generation in the country.
Extracted from City42 News