Nepra scales down tariff by Rs3.11/unit

ISLAMABAD – The National Electric Power Regulatory Authority (NEPRA) Thursday approved Rs 3.11 per unit reduction in power tariff for ex-Wapda distribution companies for the month of November under the head of monthly fuel adjustment formula.

In a public hearing on a petition filed by Central Power Purchasing Agency (CPPA-G), the Nepra decided that a relief of Rs3.11 per unit or Rs 25 billion shall be passed on to consumers for the month of November. The hearing was chaired by Chairman Nepra Tariq Sadozai.

In his comments, Chairman NEPRA raised question over the use of expensive generation plants and said that the closure of cheap power plants and running of expensive power plants is multiplying problems.

The CPPA had filed a petition requesting a decrease of Rs1.47 per unit on account of fuel adjustment. CPPA had also requested to make old adjustment of Rs 15.77 billion in tariff but NEPRA rejected it which led to Rs 3.11 per unit reduction in tariff.

The consumers will get benefit of around Rs25 billion and the relief will be given in December bills. This adjustment/relief adjustment will be available to domestic consumers in the entire Pakistan except for K-Electric and the lifeline consumers. The reason for not providing relief to the consumers of K-Electric was that it was a privatized company and distributing its own generated electricity to the consumers in Karachi and is not covered under this determination. The relief will also not be available to the lifeline consumers consuming up to 300 units per month, as they were already being provided subsidised electricity.

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 Rs7.3040 per unit in November against the actual fuel cost of Rs5.8313 per unit requesting a reduction of Rs 1.4727 per unit. According to the CPPA-G, about 7170.43 GWh (Gigawatt hours) were generated in November and 6994.47 GWh delivered to distribution companies due to about 2.27% transmission and distribution losses.

It said the share of hydropower production in the overall energy mix in November stood at 30.86 per cent. Wind and solar plants together contributed about 0.99 % and 0.59 % energy respectively at no fuel cost.

The power generation from furnace oil-based power plants was 9.04 per cent compared to 25.03% in October at a cost of Rs9.03 per unit. Similarly, the natural gas-based generation was 24.80% in November at a cost of Rs4.58 per unit. The generation from imported liquefied natural gas (LNG) also contributed 9.34% to the overall power supply at a rate of Rs7.89 per unit.

The overall energy contribution from coal was 13.41 against 6.75% in October and its fuel cost of generation stood at Rs4.29 per unit.

The share of imported electricity from Iran contributed around 0.57 per cent against 0.41% to the energy pool earlier with a cost of Rs10.63 per unit. Earlier, Pakistan had been importing 73MW which had increased to 100MW now.

The CPPA said total energy was generated at a total cost of Rs25.24 billion or Rs3.52 per unit, while 2.27% lesser power was supplied to distribution companies at a cost of Rs40.78 billion or Rs5.8313 per unit.

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