ISLAMABAD - The National Electric Power Regulatory Authority (Nepra) on Tuesday approved Rs2.23 per unit reduction in power tariff, for the Ex-Wapda Distribution Companies, for June under monthly fuel adjustment formula.

In a public hearing, on a petition filed by Central Power Purchasing Agency (CPPA-G), the Nepra concluded that a relief of Rs2.23 per unit be passed on to the consumers. The hearing was presided over by Vice Chairman Saifullah Chattha. The Central Power Purchasing Agency (CPPA-G) had filed a petition before the regulator for Rs2.13 per unit reduction in tariff to pass on the impact of international oil prices and better energy mix.

During hearing, the Nepra observed that the reference tariff for the month of June was set at Rs6.8283 per unit as fuel cost but actual cost amounted to Rs4.6783 per unit. During the hearing, the representatives of the CPPA-G acknowledged that a double entry of Rs952 million on account of adjustments for Rousch power had been erroneously made which should be corrected. Resultantly, the Nepra approved Rs2.23 per unit reduction in tariff with a total financial impact of about Rs26 billion.

This adjustment/relief 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 their July 2017 bills.

In its petition, the CPPA-G reported that it had charged a higher reference tariff of Rs6.83 per unit to consumers in the month of June but actual fuel cost turned out to be Rs4.70 per unit. The Central Power Purchase Agency had proposed Rs2.134 per unit reduction in fuel based power tariff for June over the reference fuel charges of Rs 6.83 per unit.

According to the CPPA-G, about 11,458 Gwh (Gigawatt hours) were generated in June and 11,210 Gwh could be delivered to distribution companies due to about 2.04 percent system losses. It said the share of hydropower production in the overall energy mix in June stood at 30.5 percent. Wind and solar plants together contributed about 2.2 percent energy at no fuel cost.

The power generation from furnace oil based power plants amounted to 22.34 percent in at a cost of Rs9.5 per unit. Similarly, the natural gas based generation was lower at 18.43 in June at cost of Rs4.26 per unit. The generation from imported liquefied natural gas (LNG) also had a healthy 12.28 percent contribution in the overall power supply at a rate of Rs7.45 per unit.

The overall energy contribution from coal increased to 5.7 percent mainly because of completion of Sahiwal power plant from usual one percent from Lakhra, and its fuel cost of generation stood at Rs4.3 per unit. The cost of generation from high speed diesel stood at Rs14.36 per unit with a contribution of 1.36percent to the overall power supply. Imported electricity from Iran contributed around 0.5 percent to the energy pool with the cost of Rs10.63 per unit.

The CPPA said total energy was generated at a total cost of Rs50.85 billion or Rs4.44 per unit while two percent lower supply was delivered to distribution companies at a cost of Rs52.63 billion or Rs4.7 per unit.