23 July, 2014 / Ramazan 24, 1435
The decision will result in a rise in electricity tariff of approximately 24 paisa per unit for domestic and commercial consumers across the board.—AFP/File Photo
The decision will result in a rise in electricity tariff of approximately 24 paisa per unit for domestic and commercial consumers across the board.—AFP/File Photo

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has increased the tariff of National Transmission Despatch Company (NTDC) by Rs12.71 per kilowatt/month and also approved 8 paisa per unit hike under the variable charges with immediate effect.

The authority in its decision has also approved 0.5 per cent raise in the benchmark set to recover transmission losses from the power consumers. Due to hike in the benchmark of tariff and transmission losses, the consumers would bear additional Rs5billion.

The decision issued by the regulatory body will likely result in a rise in electricity tariff of approximately 24 paisa per unit for both domestic and commercial consumers across the board.

Due to the decision, the annual revenue of the NTDC would go up from Rs16.683million to Rs21.137million.

The regulatory body issued its decision on a petition filed by the NTDC for determination of its transfer/wheeling charges.

The NTDC, which operates the national grid and functions as a link between power generation companies (GENCOs) and distribution companies (DISCOs), had sought from the authority to jack up the tariff from Rs85.91 to Rs138.56 per kilowatt/month under the head. It was of the stand that tariff should be increased under the heads of general establishment, repair and maintenance, insurance, depreciation, financial charges.

Meanwhile, the Karachi Electric Supply Company Limited (KESC), an intervener in the public hearing, opposed the stand.

The distribution company stated that almost all the items have been increased without any justification which ultimately will put the burden on the consumers, being a pass-through item.

The government is already reluctant to enhance the consumer end tariff as such, and will have to bear an additional tariff differential subsidy of Rs10.9 billion due to increase in revenue of NTDC, which will also create circular debt issue, it argued.

The total expenditure of Rs24 billion includes Rs8.9 billion for new projects whereas the NTDC has not been able even to complete the on-going projects, it added.

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Comments (3) (Closed)


Riaz
Jul 23, 2013 10:01pm

Very nice ... great decision sarcastically. People don't have power ... but yet power tariff keeps on increasing! Only if tax evasion by Malik Riaz wouldn't have been pardon, then close to a billion dollars would have been recovered by the national exchequer and no other tax increases would have been necessary ... but who care. Poor people will steal power ... rich people bribe power companies ... who pays the bills then? Middle class people - so please tax them to death!

Mohammad
Jul 23, 2013 11:36pm

This is the best EID gift from PML-N after elections. This PML-N will be worse then PPP.

Salim mastan
Jul 24, 2013 05:08pm

Why is NEPRA taking forever to announce the tariff for Solarpower? Thousands of MW 's are ready to be installed but till Nepra decides nothing can be done,

After PM visit to china and all companies want to indstall solar farms why is NEPRA dragging it's feet,

Regards Salim mastan