Islamabad - The federal government has recommended to the National Electric Power Regulatory Authority (NEPRA) Rs2.45 per unit reduction in power tariff for the Ex-Wapda Distribution Companies for July, under the monthly fuel price adjustment formula.

The recommendation, given by the Ministry of Water and Power in connection with the hearing to be held today (Wednesday) on fuel adjustment for the Discos for July, is more than the decrease demanded by the Central Power Purchase Agency (CPPA).

The CPPA had filed a petition for July fuel price adjustment (FPA) with NEPRA, and had proposed Rs2.1369 per unit reduction in fuel based power tariff for July over the reference fuel charges of Rs6.4933 per unit.

Federal Minister for Water and Power Khawaja Asif has confirmed the ministry’s recommendation in his tweet.

Pursuant to Section 31(4) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determinations of Ex-WAPDA Distribution Companies, the Authority has to review and revise the approved tariff on account of any variations in the fuel charges on monthly basis.

CPPA had reported that the diesel-based power generation cost stood at Rs12.7632 per unit, furnace oil-based at Rs7.5032, gas-based at Rs5.1186, RLNG-based generation at Rs5.3452, nuclear-based at Rs1.16 per unit and imported energy from Iran at Rs10.60 per unit.

It had also reported that total 10.714 billion units of electricity were supplied to distribution companies in July, while the generation stood at 11.05 billion units, of which the transmission losses were 2.56 percent (or 281.81 million units) and sale to IPP was 8.52 million units. Total cost of generation was Rs46.68 billion.

It also disclosed that the hydropower generation contributed about 35.87 percent, while the furnace oil based plants generated over 28.96 percent energy; natural gas based plants produced 18.67 percent of electricity and RLNG-based plants contributed 9.09 percent of electricity to the national grid followed by 3.95 percent of nuclear, diesel.

The NEPRA adjustment/relief is 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 K-Electric is that it is a privatised company, and distributes its own generated electricity to the consumers, and hence 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 subsidised electricity.