The increase will not apply to consumers of the KESC and those using less than 50 units per month in the Wapda system.-AFP photo

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) allowed on Tuesday about 20 per cent increase in fuel cost, increasing the overall power tariff by Rs1.04 per unit for nine distribution companies of Wapda to be recovered from consumers during the current billing month.

The increase will not apply to consumers of Karachi Electric Supply Company and those using less than 50 units per month in the Wapda system.

A Nepra spokesman said the tariff increase had been allowed on account of fuel cost that had gone up during the month of June over previous reference price of Rs5.23 per unit. The Central Power Purchasing Agency (CPPA) had, on behalf of distribution companies of Wapda, sought an increase of Rs1.134 per unit over the reference price.

However, after a brief public hearing, Nepra allowed Rs1.04 per unit increase in tariff for all consumers. The increase was allowed despite the fact that more than 35 per cent power generation came from hydropower resources whose production cost stood at 17 paisa per unit.

During June, the hydropower achieved maximum power generation as a result of increased water withdrawals by the provinces for irrigation.

The furnace oil-based power generation accounted for slightly over 34 per cent of total power supplies whose average fuel cost amounted to about Rs14.76 per unit. The gas-based power generation with 25 per cent share in overall supplies cost power companies the fuel expense of Rs3.3 per unit.

The diesel-based power generation that stood at a nominal 0.15 per cent cost an average of Rs15.63 per unit. The cost of power import from Iran stood at Rs8.57 per unit. The average fuel cost of the power generation stood at Rs6.07 per unit.

Under an amendment introduced in the Nepra Act through a financial bill two years ago on the desire of international lending agencies, Nepra is required to notify monthly variation in the fuel cost of power production as pass through items in the consumer tariff.