The Central Power Purchasing Agency, CPPA, has filed a petition with the National Electric Power Regulatory Authority, Nepra, to reduce the electricity tariff by... Petition submitted to reduce electricity tariff

The Central Power Purchasing Agency, CPPA, has filed a petition with the National Electric Power Regulatory Authority, Nepra, to reduce the electricity tariff by Rs 3.28 per unit. The petition was filed on the basis of fuel price adjustment from May when petrol prices had fallen worldwide.

Nepra had reduced the electricity tariff by Rs 2.62 per unit in April, but only Rs 1.86 was applied to consumer accounts. The remaining 76 paisa was granted to power companies in order to allow them to recover arrears of gas infrastructure development cess. This helped recover Rs 11 billion in installments. CPPA claims that average fuel cost in May was Rs 4.81 per unit of electricity, while Nepra had claimed it to be Rs 8.10. The difference should be applied to consumer’s bills.

Nepra may not approve the request since the government doesn’t allow them to grant consumers such benefits. The Economic Coordination Committee had approved the price reduction, but Nepra didn’t enforce them because of government regulations. Nepra also didn’t provide relief to consumers using less than 300 units per month and to owners of agricultural tube wells.