Reduction of Electricity Prices by Rs 1.90 per unit approved
NEPRA (National Electric Power Regulatory Authority) has approved the reduction in electricity prices by Rs 1.90 per unit under monthly fuel adjustment system. This reduction in price was due to the fall in international prices of oil and gas. However, this decision will not apply to K-Electric and Life Line consumers.
The decision was taken in an official meeting chaired by Chairman NEPRA Tariq Saddozai himself.
With this cut in the price of electricity, the consumers shall be given a relief of Rs.19 billion in their next bills.
CPPA asserted that “The actual power generation cost stood lower, hence, extra money collected from the consumers need to be refunded through adjustment in the next billing month under the automatic fuel pass-through mechanism.”
Moreover, there were also reports of gas being supplied to power plants that were of low capacity and were costly. NEPRA’s Chairman Tariq Sadozi criticized CPPA on the matter and directed NEPRA to only supply gas to power plants which were capable of producing more than 50% of electricity.
Additionally, the regulators are also tasked to ensure merit order of power plants.
Furthermore, it is expected that the need for electricity in the country will rise in the near future, so owing to this mentioned problem government should make more power projects to increase power generation in the country.
At the start of the previous month, World Bank under its Green Fund project has assured Pakistan that it will finance solar power projects in the country to improve its energy mix. This is a great news from Pakistan as mentioned earlier the need for energy in the country will rise.
With the goal to secure financing from the World Bank, the government of Pakistan is planning to engage international experts to develop a road map for the induction of renewable energy in the national grid.