ISLAMABAD: There is a likelihood of a Rs0.45 increase in electricity prices for a period of three months.
According to details surfaced on Thursday, the National Electric Power Regulatory Authority (Nepra) has concluded the hearing on the petition submitted by the DISCOs and K-Electric for the first quarterly adjustment. If approved, the revision will place an additional burden of about Rs8.5 billion on consumers.
The hearing on the request for a Rs0.45 increase in the power tariff for government DISCOs under the quarterly adjustment has been completed. The DISCOs have sought Rs8.41 billion under the first quarterly adjustment. Consumers stated that Prime Minister Shehbaz Sharif had reduced the power tariff by Rs7.41 for three months, yet the circular debt continues to rise.
They said the circular debt is increasing even as new relief packages for agricultural and industrial consumers have been announced. They asked whether the industrial and agricultural packages would take effect from November 1.
Nepra member Rafiq Shaikh said that, given the way the power sector is being run, the circular debt will not come to an end. Consumers noted that industry is already paying a surcharge of Rs3.23 on the circular debt, and that surcharges on loans obtained from banks under the same head will continue.
Member Sindh Rafiq Shaikh said that unless the DISCOs reduce their losses, curb theft, and improve recovery, the circular debt will keep increasing. The Power Division stated that higher losses and poor recovery have aggravated the situation. Nepra has concluded the hearing. The authority will forward its decision to the federal government after reviewing the figures.
