ISLAMABAD/KARACHI – The National Electric Power Regulatory Authority (NEPRA) on Thursday increased electricity prices by 33 paisas per unit for the month of January for all consumers except those being provided power by the Karachi Electric Supply Company.
A team headed by the NEPRA Chairman Khalid Saeed heard petitions filed by distribution companies (DISCOs) requesting an increase in electricity prices because less hydroelectric power generation and natural gas shortage during winters meant that most of the power was being generated through the use of oil furnaces.
The DISCOs claimed that since oil for the furnaces was costlier than natural gas, the price of electricity should be increased by 39 paisas per unit to compensate for the increased expense. NEPRA, however, approved an increase of 33 paisa per unit because the DISCOs had not managed to lower their line losses in accordance with an earlier agreement between the companies and the regulatory body.
An official source said that the government had decided not to increase the power tariff for the rest of the fiscal year except to compensate for monthly fuel charges, as in the case of the current increase. He said the government wanted DISCOs to improve their management and reduce line losses.
He said that the net circular debt had reached Rs 230 billion at the end of January, a major contributor to which were line losses of around Rs 125 billion resulting from the inability of DISCOs to stop power theft. He said further that on average, DISCOs incur line losses of more than 20 percent where one percent costs Rs 2 billion a year.
