Is govt really going to increase power tariff once again?

The government has apparently failed to keep its word on supply of cheaper electricity to people, as another increase in power tariff is likely in the next few days.

The Central Power Purchasing Agency (CPPA) has sent another summery to the National Electric Power Regulatory Authority (NEPRA), recommending a cumulative increase of Rs3.50 per unit for the months of January and December in the name of fuel adjustment. The CPPA has recommended an increase of Rs1.48 per unit for the month of January and Rs2.1 per unit for December 2019 in the name of fuel adjustment. NEPRA will take up the CPPA applications for power tariff increase on March 25.

The proposal for an increase in the power tariff has come at a time when fuel prices in the international market have gone down drastically. Official documents show that expensive electricity was generated using furnace oil despite the ban. In December 2019, generation of seven billion units of electricity cost the government Rs47.35 billion. This electricity was generated using furnace oil and per unit electricity cost was calculated at Rs13.57. Electricity worth Rs11 billion was generated using liquefied natural gas and its cost was calculated at Rs9.88 per unit.

According to the official documents, expensive electricity was purchased from Iran at Rs11.57 per unit despite sufficient power generation in the country. Of the total power generation in the country, 41 paisa per unit electricity was lost to fault transmission lines.