The National Electric Power Regulatory Authority (NEPRA) has sanctioned a reduction in the price of electricity by PKR 1.90 per unit under the monthly fuel adjustment system. For those who are wondering, the move follows a substantial reduction in the gas and oil prices across the globe.
The decision was announced during an official meeting on Tuesday chaired by Chairman NEPRA Tariq Saddozai himself.
CPPA asserted that “The actual power generation cost stood lower, hence, extra money collected from the consumers need to be refunded through adjustment in the next billing month under the automatic fuel pass-through mechanism.”
Furthermore, many reports pointed to the fact that gas being supplied to power plants was of low capacity and was considerably costly. Tariq Saddozai, Chairman of NEPRA, criticized Central Power Purchasing Agency (CPPA) on this matter and directed NEPRA to supply gas only to power plants which were capable of generating more than 50% of the electricity.
In addition to that, considering the fact that the demand for electricity is expected to surge overtime, owing to this problem, the current regime should launch more power projects in a bid to increase power generation in the country.
Earlier this month, World Bank (WB) under its Green Fund project has assured Pakistan that it would finance solar power projects in the country to improve its energy mix. This is a great news for our country, because as mentioned earlier, the need for energy continues to experience upward trend.
In any case, we’ll keep track of the story to keep our readers updated.