Further increase in electricity prices on the cards
In a move that has attracted significant attention and ignited debates, the Kot Addu Power Company has submitted an application to the National Electric Power Regulatory Authority (Nepra) seeking approval for what could potentially become the most expensive electricity generation tariff in the country.
This development arises amidst ongoing conversations about the increasing costs associated with electricity production in Pakistan.
The Kot Addu Power Company is advocating for an electricity tariff of Rs77.31 paisa per unit, citing substantial rises in production costs as the primary justification for this request.
Currently, the initial tariff set by this independent power producer (IPP) company stands at twenty-eight rupees per unit, representing a substantial escalation if their proposal receives approval.
Adding an intriguing dimension to this storyline, IPP Kot Addu Power, the entity responsible for electricity generation, was granted a sixteen-month extension during the Pakistan Tehreek-e-Insaf (PTI) administration.
Nonetheless, this extension has not been without controversy, as the Senate Power Committee recently deemed it illegal, intensifying discussions on this matter.