ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) on Thursday approved Rs 2.23 per unit reduction in power tariff for ex-Wapda distribution companies for the month of October under monthly fuel adjustment formula.

In a public hearing on the petition filed by Central Power Purchasing Agency (CPPA-G), National Electric Power Regulatory Authority (Nepra) approved a total Rs.2.23 per unit reduction for October under monthly fuel adjustment mechanism. The hearing was presided over by NEPRA chairman Brig (r) Tariq Saddozai. Central Power Purchase Agency (CPPA), in its petition, had requested the Nepra to reduce tariff by Rs 2.20 per unit for October under monthly fuel adjustment mechanism.

However, the regulator approved Rs2.23 per unit reduction in tariff for October. The cut is expected to provide customers relief worth Rs 22 billion and this relief will be given in bills of November.

In his comments, chairman NEPRA raised question over the use of expensive power generation plants and decided to issue written directive to the government in this regard.

This adjustment/relief adjustment will be available to domestic consumers in 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 privatised 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. This compensation will be available to consumers in their November 2017 bills.

The CPPA-G had filed the petition for a tariff cut on behalf of ex-Wapda distribution companies. In its petition, the CPPA-G reported that companies had charged consumers a reference tariff of Rs 7.336 per unit in October against the actual fuel cost of Rs 5.13 per unit. The petitioner asked for 2.2051 decrease per unit in reference fuel charges.

According to the CPPA-G, about 10,176.49 Gigawatts (GWh) hours were generated in October at a cost of Rs 50.29 billion and 9,866.41 GWh were delivered to the distribution companies at a cost of Rs 50.63 billion. The total transmission losses were 300.64 GWh, accounting for 2.95 per cent of the total energy supplied.

The data shared by CPPA-G said that the share of hydropower production in the overall energy mix in October was recorded at 2438.39 GWh, which accounted for 23.96 per cent of all power generated in the country. Wind, baggasse and solar plants together contributed about 2 per cent energy. The power generation from furnace oil-based power plants was 2547.48 GWh or 25.03 per cent at a cost of Rs 9.7511 per unit . It was informed that no electricity was generated from high-speed diesel. Power generated through RLNG stood at 1492.74Gwh or 14.64 per cent at a cost of Rs 7.8751 per unit. Power generated through local gas stood at 1863.17 GWh or 18.31 per cent at a cost of Rs 4.6340 per unit .The share of coal in power generation stood 6.75 per cent.

The total generation through coal was 687.36 Gwh during the month of October at a cost of Rs 4.2909 per unit. Power generated through nuclear source was 777.55 Gwh or 6.77 per cent at cost of Rs 0.96 per unit.