Nepra rejects tariff review sans industry input

The National Electric Power Regulatory Authority (Nepra) said it would reject a proposed incremental tariff package if it was finalised without consulting industry, according to Dawn. The warning came at a public hearing on Thursday, as the government sought about Rs36.52 billion in extra recovery from power consumers for September because of costlier LNG imports. A similar burden is also expected in October, the hearing was told.

Central Power Purchasing Agency (CPPA) chief executive Rehan Akhtar linked the July fuel cost rise of Rs2.52 per unit mainly to the highest spot purchases of RLNG so far, since contract cargoes from Qatar were unavailable after the Strait of Hormuz was closed. RLNG-based power costs reached Rs47.4 per unit during July, and RLNG prices rose by almost one-third in August, a jump that would hit October billing. Industrial representatives said the incremental support package was faulty and had not been reviewed after six months as promised.

Nepra member Amina Ahmad said the regulator would return the Power Division's review unless it was updated after full consultations with industry. Once approved, about Rs36.55 billion would be billed in September to customers of every power company, including K-Electric. Industrial users also questioned furnace oil exports at a subsidised rate while a petroleum levy was charged on domestic use.