The National Electric Power Regulatory Authority (Nepra) has concluded its hearing on the Central Power Purchasing Agency’s (CPPA) request for a monthly fuel adjustment, which could lead to a temporary reduction of Rs1.03 per unit in electricity tariffs.
The session, presided over by Nepra Chairman Waseem Mukhtar, involved a review of the CPPA’s data, with a final decision to be announced after further evaluation.
CPPA officials informed the authority that power plants operated in accordance with the merit order during December. They highlighted that lower fuel costs contributed to the proposed tariff reduction. However, they noted that if the Neelum Jhelum Power Project had been operational, consumers would have benefited even more.
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During the hearing, it was revealed that electricity demand rose by 1.5% under the winter package, resulting in an additional consumption of 180 million units.
Consumers present at the session raised concerns about how CPPA’s financial losses were managed. One consumer questioned, “How does the CPPA compensate for its losses?”
Nepra officials clarified that CPPA’s financial losses for December were 2.44%, slightly lower than the projected 2.63%, and these losses were not passed on to consumers.
However, some consumers sought further clarification, asking, “If the public isn’t charged for these losses, where does the money come from?”
CPPA representatives explained that the agency absorbs its losses through its own profits. This led to another inquiry: “What is the profit margin that enables CPPA to cover losses amounting to billions of rupees?”
