ISLAMABAD - National Electric Power Regulatory Authority (Nepra) on Friday deprived consumers of Rs11 billion relief due to reduction in fuel prices, by deducting Re 0.76 against gas infrastructure development surcharge GIDC from the per unit reduction of Rs.2.62 proposed for the month of April, 2015 under Fuel Price Adjustment.

CPPA submitted that during the month of April, the energy generated amounted to 7341.51 GWh, while the cost was calculated Rs.45450.81 million.

The per unit cist was calculated as Rs. 6.1909. After line losses the net electricity delivered to distribution companies in the said month was Rs. 6.3022. This per unit cost was Rs. 2.62 per unit less than the allowed cost of electricity generation.

On the basis of the above data, decrease of Rs.2.6275 / kWh over the reference fuel charges Rs.8.9297/ kWh, for Ex-Wapda Discos for FY 2013-14, was proposed for the month of April 2015.

Nepra deducted 76 paisa per unit in lieu of gas infrastructure development surcharge and allowed to pass on the relief of remaining to consumers which would be reflected in the bills of next month.

This decrease would not be applicable to consumers using more than 300 units per month and agriculture consumers.

In its decision to allow Gas Infrastructure Development Surcharge (GIDC) the Authority wrote that being a part of gas price, the GIDC should be charged from consumers.

The Authority is of the view that being part of Gas Price, GIDC has to be passed on to the consumers as part of fuel price and is to be reflected in the Fuel cost Component of gas based IPPs. The Authority also believes that, due to non inclusion of impact of GIDC in the Fuel Cost Component of gas based IPPs, being a pass through item, consumers have availed extra benefit on account of monthly fuel price adjustment in the previous months, which needs to be adjusted through future adjustments, the decision said.

CPPA shall adjust the arrears of GIDC of Rs 11.10 billion in accordance with the decisions with respect to future monthly FPA, treating this as under recovery of fuel cost during the period in question, the decision further said.