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Nepra raises industrial power tariff to Rs25.30 a unit, two members dissent

The regulator also approved a Rs2.3673 per unit fuel charge adjustment for September consumption, to be recovered in November bills from ex-Wapda and K-Electric consumers.

Skardu Times desk
Nepra raises industrial power tariff to Rs25.30 a unit, two members dissent
Photo: Business Recorder

The National Electric Power Regulatory Authority raised the special industrial electricity tariff to Rs25.30 per unit and approved a fuel charge adjustment of Rs2.3673 per unit for November bills, decisions that together set what factories and households pay.

Two members of the authority dissented from the industrial revision, Dawn reported, saying the actual marginal cost of supply is Rs31.83 per unit. Dawn reported that Nepra warned the incentive package could be suspended and that legal action could follow over missed deadlines.

On the fuel charge adjustment, the regulator approved Rs2.3673 per unit for September 2026 consumption, below the Rs2.5624 per unit sought by the Central Power Purchasing Agency-Guaranteed, Business Recorder reported. The adjustment applies to consumers of ex-Wapda distribution companies and K-Electric under the uniform tariff policy, except lifeline consumers, electric vehicle charging stations and prepaid consumers who opted for prepaid tariffs. Consumption under the Incremental Consumption Package is also covered. Where November bills have already been issued, the charge will be recovered in the following month. Dawn reported the adjustment would recover about Rs25 billion.

CPPA-G filed its petition on October 15, claiming an actual fuel cost of Rs10.0220 per unit against a reference of Rs7.4596 per unit. Nepra held a public hearing on October 29, attended by CPPA-G, the National Grid Company, the Independent System and Market Operator, the Power Planning and Monitoring Company, the Power Division and consumer representatives.

Generation in September ran 0.98 per cent above the reference, with the mix shifting toward imported coal. Imported coal output rose from 1.14 billion to 2.16 billion units and its fuel cost from Rs11.78 to Rs17.23 per unit. Local coal fell from 1.48 billion to 1.33 billion units at Rs5.99 per unit. Hydel fell from 5.05 billion to 4.83 billion units and nuclear from 2.11 billion to 1.89 billion units. RLNG generation fell from 1.48 billion to 0.80 billion units at Rs39.74 per unit, while gas-based output rose from 0.76 billion to 1.07 billion units, with fuel cost up from Rs10.42 to Rs13.04 per unit. Diesel-based generation cost Rs62.14 per unit and furnace oil-based Rs44.86.

Stakeholders at the hearing questioned the use of imported coal over local coal, the cost of diesel and RLNG generation and transmission losses. CPPA-G said plants were dispatched by the system operator under the Economic Merit Order, and that levies on petroleum products are a federal and Petroleum Division matter.

Nepra examined prior-period adjustments of Rs5.759 billion and provisionally allowed a negative adjustment of Rs10.617 billion claimed for RLNG plants that received indigenous gas under an Economic Coordination Committee arrangement charging Rs2,000 per MMBTU from April 1 to October 31, 2026. The regulator said plant-wise workings had not been provided and directed CPPA-G to submit details with its next monthly claim.

How the reports differ

Dawn led with the revised industrial tariff and the dissent, naming the two members' figure of Rs31.83 per unit as the marginal cost and reporting Nepra's warning of suspension and legal action over missed deadlines. Business Recorder reported only the fuel charge adjustment, with the generation mix, the CPPA-G claim and the list of exempt consumers, and did not carry the industrial tariff decision or the dissent. Dawn put the recovery from the fuel adjustment at about Rs25 billion, a figure Business Recorder's report did not give.

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