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NEPRA Lowers WAPDA Hydropower Tariff by 27.5 Percent

To guarantee WAPDA revenue stream at Rs124 billion for the current fiscal year, the National Electric Power Regulatory Authority (NEPRA) has decreased its average bulk hydropower tariff by 27% for users.

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The bulk hydropower tariff, at which WAPDA sells its power generation from all hydropower stations to the Central Power Buying Agency, has reportedly been set at Rs4.11 per unit for FY2020-21 as opposed to Rs5.67 established in FY2017–18, according to a local media report.

Due to its inclusion in the bigger basket of all fuels, the decision won’t directly affect consumer-end tariffs. Depending on the availability of water, the share of hydropower to the total power supply typically ranges from 9 to 40 percent.

The government has already committed to raising the power tariff by around 35% by June 2022 in a letter to the international lenders.

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Hydel profit and levies, on the other hand, have been decreased from Rs3.55 to 96 paisa per unit.

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