ISLAMABAD -  The National Electric Power Regulatory Authority (Nepra) on Wednesday approved a total Rs4.35 per unit reduction for February and March under monthly fuel adjustment mechanism.

The authority has refused to accept the request of the Central Power Purchase Agency (CPPA) regarding the delay in passing on the relief to the consumers for two months and said that the amount of adjustment will be made in the power consumers’ electricity bills of May. In a public hearing, the Nepra concluded that the distribution companies had charged Rs7.26 per unit in February and Rs8.098 a unit in March on account of fuel cost to consumers but the actual fuel cost was significantly lower. The hearing was presided over by Nepra Chairman Tariq Sadozai. The Central Power Purchase Agency (CPPA) had sought in its petition a reduction of Rs2.3979 per unit and Rs2.2037 per unit for these months under review.

The Nepra chairman said that despite the authority had given decisions on Nundipur power plant’s tariff, in January 2016, the government didn’t notifying it. The authority has determined Rs4.9 for the plant but meanwhile the fuel cost increase by Rs2.5 per unit. Delay on the part of the government to notify the tariff will burden the consumers at once, the Nepra chairman observed. Therefore to protect the consumers from sudden burden of the increased tariff, the authority has decided, that instead of the demanded decrease of Rs2.3979 per unit for the month of February and Rs2. 2037 per unit for March by CPPA, it will allow a reduction of Rs2.15 and Rs2.20 respectively for the months under review. The chairman also said that the legal proceedings in the delay of the issuance of notification of the Nundipur tariff will take place.

The CPPA official requested that the authority should delay the passing of relief to consumers at least by two months. The plea taken by the CPPA was that this amount will be used for fuel stock to make Ramazan loadshedding free. Nepra member Himayat Ullah Khan asked the CPPA official whether such a demand was legal? ”We are not going to support any illegal act we are executive body but you want us to play administrative role,” he added. CPPA responded that it is for the relief of the consumers. However, the demand was rejected by Nepra and said that now the relief should be provided to the consumers in May. The decision will have accumulative impact of around Rs32 billion.

This adjustment/relief 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.

As per the available data provided by CPPA, the total generated electricity from all sources, during February, stood at 6382.77 Gigawatt hours (GWh) at the total cost of Rs29.2 billion. The CPPA supplied 6223.19 GWh to the distribution companies at a cost of Rs30.259 billion but the Discos faced a net loss of 2.36 percent of total supplied electricity.

In February, almost 28.15 percent power was generated from natural gas at rate of Rs4.2345/unit, this was the highest share in total power generation pie. Around 26.28 percent power generation was produced through furnace oil based plants at rate of 9.4365 per unit. The share of power generation through hydel resources stood at 23.4 percent. From imported re-gasified liquefied natural gas (RLNG) based sources, 8.43 percent electricity was generated at a rate of Rs7.5649/unit. Similarly, Nuclear based power generation contributed 9.1 percent with a cost of Rs1.1235 per unit. Diesel based electricity contributed about 0.09 percent power generation with a cost Rs15 per unit. From Wind 1.27 percent electricity was produced, 1.26 percent was produced from Bagasse for 4.2636 per unit, solar based generation stood at 0.85 percent. Coal based generation stood at 0.07 percent with cost of 4.5/unit. Beside, 38.72 Gwh or 0.53 percent electricity was imported from Iran with cost of Rs10.63 per unit.

The CPPA data further said that during March, 7619.86 Gigawatts hours (GWh) was generated at total cost of Rs42.2 billion. The CPPA supplied 7400.2 GWh to the distribution companies at a cost of Rs43.622 billion but the Discos faced a net loss of 2.76 percent of total supplied electricity.

The CPPA reported that 32.75 percent power was generated from furnace oil at rate of Rs9.88/unit - the biggest share in country’s power generation. Natural gas generation was 29.12 percent at rate of Rs4.7136/unit. The share of power generation through hydel resources stood at 16.85 percent. From RLNG-based sources, 8.02 percent electricity was generated at a rate of Rs7.5689/unit. Nuclear based power generation contributed 8.09 percent with a cost of Rs1.1230 per unit. Diesel based electricity contributed about 0.5 percent power generation with a cost Rs15.0479 per unit. From wind 1.14 percent electricity was produced and 1.42 percent was produced from Bagasse for 3.7645/unit, solar based generation stood at 0.83 percent. Coal-based generation stood at 0.11 percent with cost of 4.5/unit. Beside, 38.72 Gwh or 0.51 percent electricity was imported from Iran with cost of Rs 10.63 per unit.

The authority also showed serious concerns over the utilisation of only 50 percent of the IPPs installed capacity and said that the government can controlled the loadshedding the by utilising the IPPs.

It was decided that a letter will be written to the high government officials in this regard.­