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ISLAMABAD: Amid a government request for about Rs36.52 billion in additional recovery from power consumers in September for using expensive LNG imports and a similar burden expected the following month, the National Electric Power Regulatory Authority (Nepra) on Thursday announced that it would reject the special tariff incentive package if it was finalised without consulting the industry.
At a public hearing conducted by Nepra members Maqsood Anwar Khan, Amina Ahmed and Ghulamullah Shaikh, Central Power Purchasing Agency (CPPA) Chief Executive Officer Rehan Akhtar said the major reason for the Rs2.52 per unit additional fuel cost in July was the “so far highest” RLNG cargo purchases from the spot market in the absence of contract cargos from Qatar due to the closure of the Strait of Hormuz.
Many commentators raised questions over coal imports by power producers, particularly the Port Qasim Power Plant, which they alleged were unnecessarily burdening consumers, and asked the regulator to streamline the procurement process through a fair and transparent mechanism.
The industrial representatives, mostly from Karachi, reiterated their stance that the industrial support package on incremental consumption was faulty, as it did not benefit the majority of industries and should have been reconsidered after six months, as promised at the time of its introduction, but remained unchanged for the ninth month.
