ISLAMABAD: The National Electric Power Regulatory Authority on Wednesday announced an increase of Rs1.51 per unit in power tariff on account of fuel adjustment charges to match the cost of rising prices of furnace oil in May this year.The hike in tariff was made on a petition filed by the Central Power Purchase Agency, which sought a tariff increase of Rs1.52 per unit.

The CPPA claimed that the actual cost of producing thermal power last month was Rs8.06 per unit whereas the reference cost for electricity production through furnace oil for the month was Rs6.54 per unit.

The CPPA petition said that in May 2012, electricity distribution companies (Discos) sold 7.37 billion units and its cost in fuel was Rs59.42 billion.

Of the electricity sold to Discos last month, 34.46 per cent was produced with furnace oil and 28.20 per cent by gas-based thermal units.

Of the electricity produced in May, hydel production contributed 29.16 per cent, nuclear production 5.82 per cent, production by coal 1.04 per cent, high speed diesel 1.07 per cent and wind power one per cent.

Electricity imported from Iran accounted for 1.43 per cent of the power sold in May.

At a public hearing held on Wednesday, CPPA officials said the price of furnace oil in May 2012 was Rs72,000 per ton compared to the reference price of Rs65,000.

After the hearing, Nepra allowed the increase of Rs1.51 per unit which will be reflected in electricity bills of December 2012.