The National Electric Power Regulatory Authority (Nepra) has approved an additional fuel cost of Rs3.33 per unit for April consumption, allowing ex-Wapda distribution companies to raise Rs29 billion in June. This adjustment will result in a net tariff increase of about Rs6 per unit due to its impact on quarterly tariff adjustments. It will apply to all consumer categories except Electric Vehicle Charging Stations and lifeline consumers.
Nepra’s determination also highlighted the minimal impact of solar net metering on electricity sales, with only 1.15% of total grid supply coming from net metering units in April. This challenges the narrative against solar homeowners and points to other efficiency-related issues in the power network.
The increase in fuel cost comes amidst a 26% annual base tariff increase and an 18% hike under quarterly tariff adjustments, adding to the financial burden on consumers. The use of RLNG and the low utilization of Thar coal power plants have contributed to the rise in fuel costs, with the power sector expected to bear a financial burden of Rs32 billion in April.
Overall, the energy sector is facing challenges in balancing fuel costs, system requirements, and demand patterns to ensure stability and efficiency in power generation.\
[ad_2]
Source link
