Further increase in electricity prices on the cards

Further increase in electricity prices on the cards

In a move that has attracted significant attention and ignited debates, theKot Addu Power Company has submitted an application to the NationalElectric Power Regulatory Authority (Nepra) seeking approval for what couldpotentially become the most expensive electricity generation tariff in thecountry.

This development arises amidst ongoing conversations about the increasingcostsassociated with electricity production in Pakistan.

The Kot Addu Power Company is advocating for an electricity tariff ofRs77.31 paisa per unit, citing substantial rises in production costs as theprimary 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 substantialescalation if their proposal receives approval.

Adding an intriguing dimension to this storyline, IPP Kot Addu Power, theentity responsible for electricity generation, was granted a sixteen-monthextension during the Pakistan Tehreek-e-Insaf (PTI) administration.

Nonetheless, this extension has not been without controversy, as the SenatePower Committee recently deemed it illegal, intensifying discussions onthis matter.