ISLAMABAD, Oct 19: The National Electric Power Regulatory Authority (Nepra) has allowed Wapda and KESC to increase consumer tariff by 11 paisa and 13 paisa per unit respectively with immediate effect under automatic fuel adjustment mechanism.
The increase for consumers in Karachi comes to 2.7 per cent as against 2.8 per cent for those under the Wapda network. The tariff for lifeline consumers using up to 50 units would remain unchanged at Rs1.40 per unit for both the KESC and Wapda consumers.
This is the second time the electricity tariff has been increased under automatic fuel adjustment formula introduced by the Nepra early this year. The Wapda had asked the IMF and the World Bank last month for help to increase electricity tariff to meet its cash shortfall.
The announcement came on the day Wapda Chairman Lt-Gen Zulfiqar Ali Khan criticized Nepra for not allowing the required raise in electricity tariff as the regulator had granted 12 paisa per unit increase against 75 paisa demanded by the Wapda.
The regulator had announced in March that the tariff would be reviewed on quarterly basis to pass on impact (plus or minus) of variation in fuel prices to the consumers.
After the first revision in March under fuel-based adjustment, the furnace oil prices have continuously been on the decline but the benefit could not be provided to the consumers.
Official figures available with Dawn suggest that furnace oil prices stood at Rs12,548 per ton in October, 2000 and declined to Rs11,770 per ton in March this year when first fuel-based increase of 12 paisa was allowed by the Nepra.
Even the last furnace oil price of Rs10,473 per ton on Sept 16, 2001 that was calculated in the fresh review on Friday is almost Rs1,300 per ton lower than fuel price of Rs11,770 per ton in March. The Nepra in its announcement said that furnace oil price was Rs9,735 on July 1, 2001, decreased to Rs9,304 per ton, slightly increased to Rs9,533 per ton on Aug 1, followed by Rs9,810 per ton on Aug 16, Rs10,133 per ton on Sept 1 and Rs10,473 per ton on Sept 16, 2001. On June 1, 2001, furnace oil price stood at Rs11,735 per ton.
The Nepra spokesman, when contacted, said the power rates were revised on the basis of previous quarter’s fuel rates and involved calculations that he claimed were correct. He did not respond as to how the rates were fixed for the remaining part of the year while fuel-based revision is to be made in December and then in March.
“During the period July 1, 2001 to Sept 30, 2001 there has been no known variation in the price of any relevant fuel except that of furnace oil,” said a Nepra announcement.
The present adjustment takes into account the increase in price of furnace oil on account of which the annual fuel bill of Wapda companies and the KESC for the year 2001 to 2002 has increased, said the announcement.
