ISLAMABAD - The National Electric Power Regulatory Authority (NEPRA) Tuesday approved Rs 1.82 per unit reduction in power tariff, for the ex-Wapda distribution companies, for August under monthly fuel adjustment formula.

In a public hearing, on a petition filed by Central Power Purchasing Agency (CPPA-G), the Nepra concluded that a relief of Rs1.82 per unit be passed on to the consumers for the month of August. The hearing was presided over by NEPRA member KP, Himayatullah Khan. The consumers will get benefit of around Rs 23 billion and the relief will be given in next month’s bills.

The NEPRA approved the power cut for August in a public hearing held here on the petition filed by Central Power Purchasing Agency Guarantee Limited (CPPA-G). This adjustment/relief adjustment will be available to the domestic consumers in entire Pakistan, except in Karachi and the lifeline consumers. The reason for not providing relief to the consumers of the K-Electric is that it is a privatized company and distributing its own generated electricity to the consumers in Karachi and is not covered under this determination. Besides the consumers of K-Electric, the relief will also not be available to the lifeline consumers consuming up to 300 units per month, as they are already being provided subsidized electricity. This compensation will be available to consumers in their August 2017 bills.

The CPPA-G filed a petition before the power regulator for a tariff cut on behalf of ex-Wapda distribution companies. In its petition, the CPPA-G reported that it had charged consumers a reference tariff of Rs 6.456 per unit in August against the actual fuel cost of Rs 4.648. Therefore, there is a legal requirement to return Rs 1.80 per unit to consumers.

However, in his observation, Himayatullah Khan questioned why High Speed Diesel (HSD) based four thermal power plants were operated in August which has generated expensive electricity. Four thermal power plants, Orient, saif,Sapphire and Hallmore, located in Punjab, were operated on HSD which has generated expensive electricity at the cost of Rs 13.5 per unit. He warned CPPA about the expensive generation and asked them to use electricity from gas.

The officials of the CPPA informed that the use of HSD for power generation has an impact of Rs 2 billion extra on the power consumers. Himayatullah Khan said that by using HSD the government is burdening the consumers with Rs 24 billion extra per year. The officials of the CPPA said that in this regard NEPRA should talk to the Ministry of energy to provide gas for these plants.

According the CPPA-G, about 12,754.30 GWh (Gigawatt hours) were generated in August and 12,410.15 GWh delivered to the distribution companies due to about 2.6 percent transmission losses. The share of hydropower production in the overall energy mix in August stood at 32.90 percent. Wind and solar plants together contributed about 2.07 percent energy at no fuel cost. The power generation from furnace oil based power plants was 24.49 percent at a cost of Rs9.391 per unit. Similarly, the natural gas based generation 16.83 percent in August at cost of Rs4.37 per unit. The generation from imported liquefied natural gas (LNG) also contributed 10.74 percent in the overall power supply at a rate of Rs7.47 per unit. The overall energy contribution from coal was 3.18 percent, against 2.95 percent in July, and its fuel cost of generation stood at Rs4.29 per unit.

The cost of generation from High speed Diesel (HSD) stood at Rs13.50 per unit with a contribution of 2.63 percent to the overall power supply. Imported electricity from Iran contributed around 0.41pc to the energy pool with the cost of Rs10.63per unit.

The CPPA said total energy was generated at a total cost of Rs57.88 billion or Rs 4.49 per unit while 2.7 percent lower supply was delivered to distribution companies at a cost of Rs57.68 billion or Rs 4.648 per unit.