ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has completed its hearing on the Central Power Purchasing Agency’s (CPPA) request for a monthly fuel adjustment, indicating a possible one-month reduction of Rs1.03 per unit in electricity prices.
The hearing, chaired by Nepra Chairman Waseem Mukhtar, included a review of data presented by the CPPA. Officials stated that a final decision would be announced after a thorough assessment.
Lower Fuel Costs Drive Potential Reduction
During the briefing, CPPA officials explained that power plants operated according to the merit order in December, and lower fuel costs contributed to the proposed price cut. They added, “Had the Neelum Jhelum Power Project been operational, the public would have benefited even more.”
The briefing also highlighted that electricity demand increased by 1.5% under the winter package, leading to an additional consumption of 180 million units.
Consumers Question CPPA’s Financial Losses
During the session, consumers raised concerns about how CPPA manages its financial losses.
A consumer asked, “How are CPPA’s losses covered?”
Nepra officials clarified that CPPA’s financial losses in December stood at 2.44%, lower than the projected 2.63%, and were not passed on to consumers.
However, consumers pressed further, questioning, “If this money is not collected from the public, then where does it come from?”
CPPA representatives responded, “The organization covers its losses from its own profits.”
A consumer then asked, “What is the profit margin that allows CPPA to absorb losses amounting to billions of rupees?”—a question that remained unanswered.
