National Electric Power Regulatory Authority (Nepra) is all set to increase hydroelectric power rates by Rs 1.18 per unit for 2013-14 and Rs 2.20 per unit under the monthly fuel adjustment formula. Water and Power Development Authority (Wapda) has filed tariff determination for increase in the price of hydroelectric power for the coming year, pleading that owing to massive increase in maintenance and repairs the authority should add 7.50 billion to tariff collections for the next year.
According to the tariff petition, Wapda has to pay Rs 6 billion to Khyber Pakhtunkhawa as hydel profit and Rs 350 million to Indus River System Authority (Irsa) as water surcharge in the forthcoming year. Wapda will produce 31.75 billion units in the coming year, hence Nepra should approve Rs 1.18 increase per unit in the power tariff.
The current hydroelectric power tariff is 72 paisa, whereas Wapda has proposed new rate at Rs 1.90 per unit. Nepra has accepted the tariff petition of Wapda and hearing would be held in Lahore on May 14. Central Power Purchasing Agency (CPPA) has asked for increase in power tariff by Rs 2.20 per unit due to fuel adjustment, pleading that the decrease in gas and power production pushed up their prices. Nepra has fixed Rs 7.76 per unit for March, whereas the actual cost of fuel was Rs 9.96 per unit. The CPPA's petition will be heard next week.