ISLAMABAD, May 29: A Rs1.97 per unit increase in electricity tariff for all distribution companies of Wapda was approved by the National Electric Power Regulatory Authority (Nepra) on Tuesday under the monthly fuel adjustment mechanism.

The increased tariff was worked out by Nepra at a public hearing on account of fuel price adjustment for April. The Central Power Purchasing Agency (CPPA) had sought a tariff increase of Rs2.01.

It was decided that the tariff increase notification would be delayed for a week to allow the CPPA to provide additional verified data and to examine the legal impact of a stay order issued by the Islamabad High Court against recovery of fuel charges approved by Nepra in its previous determinations.

A Nepra official said the court had issued the stay order only to the extent of recovery of previous bills but the regulator wanted to examine the legal position before issuing a notification.

The tariff increase will not apply to domestic lifeline consumers using less than 50 units per month.

The CPPA had claimed the fuel component of its overall power generation at Rs9.7 per unit against a reference fuel tariff of about Rs7.7.

It said the total hydroelectric power production stood at 21.7 per cent at a generation cost of about 25 paisa per unit. In comparison, furnace oil production was about 41 per cent in April with a cost of Rs17.6 per unit. Gas-based power generation was 30 per cent with a cost of Rs4.8 per unit. Production from high speed diesel accounted for 2.13 per cent at Rs20.24 per unit. Nuclear energy during the month accounted for about 4.08 per cent of total generation at Rs1.35 per unit.

The regulator earlier increased the fuel-based power tariff for the Karachi Electric Supply Company (KESC) by about Rs1.23 per unit for October, November and December 2011 to be recovered from consumers in June and July under the monthly fuel price adjustment.

A notification said the tariff was increased by Rs1.12 per unit for October and later reduced by 21 paisa. As such, the consumers in Karachi would have to pay an additional 91 paisa per unit in June. A 32 paisa per unit increase for December 2011 will be recovered in July.

The Rs1.97 per unit increase approved for Wapda companies is in addition to Rs2.38 for February and March and another 16 per cent increase approved by the government early this month.