ISLAMABAD -  The National Electric Power Regulatory Authority (NEPRA) Thursday approved Rs 2.99 per unit reduction in power tariff for ex-Wapda distribution companies for the month of December under a monthly fuel adjustment formula.

The decision was taken by NEPRA, in a public hearing, on a petition filed by Central Power Purchasing Agency (CPPA). However the CPPA request of previous adjustment of Rs 969.88 million or Rs 0.124 per unit on account of supplemental charges was turned down by the NEPRA.

On the basis of data, the CPPA has proposed a reduction of Rs 2.77 per unit for December 2017. Against the actual cost of generation, in the period under review, of Rs 5.32 per unit the consumer were charges at the reference price of Rs 8.1037 per unit.

The power distribution companies have charged an extra Rs 21.7 billion through electricity bills from its consumers for December, so it was decided by NEPRA that the amount will be returned to the consumers.

The consumers will get benefit of around Rs 21.7 billion and the relief will be given in January 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 relief will also not be passed on to the industrial consumers who were already getting cheaper electricity.

According to the data submitted by CPPA-G, about 7762.84 GWh (Gigawatt hours) were generated in December costing Rs 39.29 billion. The net electricity delivered to power distribution companies was 7519.12 Gwh at cost of Rs 40.06 billion.

The transmission losses were higher than November as the total losses in December were  2.99 % against the 2.27 %  transmission losses during previous month.

The CPPA in its petition said that it had purchased 51.47 MW electricity generated on High Speed Diesel (HSD) in December 2017 which accounted for 0.66 per cent of total supply.

The total contribution of hydel sources was 1231.53 GWh or 15.86 per cent of total generation. The hydel generation had been massively reduced after reduction in water releases from Tarbella and Mangla reservoirs due to closure of canals.

The data further said that CPPA purchased 2251.45 GWh electricity produced on Residual Fuel Oil (RFO), which was 29 per cent of total generation, at a cost of Rs 9.8 per unit whereas the cost of electricity generated by using indigenous gas was Rs 4.41 per unit and its total share in electricity generation was 17167.59 GWh accounting or 27.7 per cent of total generation.

The electricity generated from RLNG was 395.06 GWh or 5.09 per cent of total generation, at a cost of Rs 6.33 per unit.

Nuclear power plants delivered 728.6 GWh of electricity at a rate of Rs 1.025 per unit, cheapest amongst all fuels. The electricity imported from Iran was 38.82 GWh in December at a price of Rs 10.63 per unit. The 86.39 GWh was generated through bagasse at cost of Rs 6.25 and 188.75 GWh and 48.78 was purchased from wind and solar respectively.