ISLAMABAD -  The National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs2.60 per unit reduction in power tariff, for the Ex-Wapda Distribution Companies, for October under monthly fuel adjustment formula.

In a public hearing presided over by NEPRA’s Chairman Brig (r) Tariq Saddozai, the regulatory authority concluded that the distribution companies had charged Rs7.3369 per unit on account of fuel cost to consumers in October but the actual fuel cost was significantly lower. As per the NEPRA decision, the benefits of the cheaper fuel cost for power generation should be passed on to the domestic power consumers. Now, under this decision, the government will return Rs2.60 per unit to the consumers having a cumulative impact of around Rs20 billion.

The authority expressed serious concern over keeping the Nandipur Power plant idle for the last several months. Despite NEPRA decisions on all applications regarding the plant’s tariff, why the Ministry Of Water And Power is not notifying it, the NEPRA chairman questioned. Whether the government is planning to go to the court of law against the authority’s decisions he questioned. The regulatory authority asked reply from the Ministry of Water and Power in this regards, as the closure of the plant has incurred huge losses to the national exchequer.

Despite more than a year has been passed of its commissioning/commercial operation date (COD), it did not generate electricity with full capacity. Keeping it close is the violation of the agreement and the contractor company of the plant could face huge penalties.

The Rs2.60/unit 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 privatised 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 subsidised electricity. This compensation will be available to consumers in December 2016.

The Central Power Purchase Agency (CPPA) in its petition had proposed Rs2.5955 per unit reduction in fuel based power tariff for the month under review over the reference fuel charges of Rs7.3369 per unit.

CPPA reported that the diesel-based power generation cost stood at Rs12.105 per unit, furnace oil-based at Rs7.9557, natural gas-based at Rs5.495, RLNG based cost Rs6.7, nuclear at Rs1.160 per unit, baggasse Rs5.982/unit and imported energy from Iran at Rs10.63 per unit.

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.

The CPPA reported that a total of 8.494b units of electricity were supplied to distribution companies in October, while the generation was of 8.678b units of which the transmission losses were 1.99 percent (or 172.46m units) and sale to IPP was 11.75m units. Total cost of generation was 38.17b rupees.

 

It said the hydropower generation contributed about 31.8 per cent while furnace oil based plants generated 30.3pc energy. Natural gas based plants generated 24.4 per cent electricity and RLNG based electricity share was 4.07pc while Nuclear, diesel and wind contributed 5.04 percent, 1.99 percent and 0.82 percent of electricity to the national grid. Ends