ISLAMABAD -  The National Electric Power Regulatory Authority (NEPRA) on Tuesday approved Rs3.6 per unit reduction in power tariff for ex-Wapda distribution companies for November under a monthly fuel adjustment formula.

At a public hearing presided over by NEPRA Chairman Brigadier (retired) Tariq Saddozai, the authority observed that Discos charged Rs7.3040 per unit in November on account of fuel cost from the electricity consumers, while the actual fuel cost was significantly lower.

The authority decided that Rs3.6 per unit may be returned to Discos domestic power consumers for November under the monthly fuel price adjustment. The decision will help domestic consumers to get a relief of Rs24b.

This adjustment will be available to the domestic consumers across the country except for K-Electric consumers and lifeline consumers. The reason for not providing a relief to consumers of K-Electric was that it was a privatised company and distributing its own generated electricity to the consumers in Karachi. The relief will also not be available to lifeline consumers consuming up to 300 units per month, as they are already being provided subsidised electricity. This relief will be adjusted to consumers in their January 2017 bills. The Central Power Purchase Agency (CPPA) in its petition had proposed Rs3.6 per unit reduction in fuel based power tariff for November.

In November, the CPPA did not purchase diesel and coal-based electricity. According to the energy mix for the month of November, the share of hydropower was 41 percent, furnace oil 19.4 percent, natural gas 27.76 percent and RLNG electricity share was 4.13 percent, nuclear, wind and biogases 4.88 percent, 0.67 percent and 0.81 percent of electricity respectively to the national grid.

The authority was informed that out of Rs24 billion saving, the consumers will get a relief of Rs15 billion due to good energy mix and the remaining Rs9 billion due to reduced oil prices in international market.

The CPPA reported that a total of 6.839 billion units of electricity were supplied to distribution companies in November, while the generation was of 6.935 billion units of which the transmission losses were 1.21 percent (or 83.59 million units) and the sale to IPP was 11.75 million units.

The total cost of generation was Rs24.82 billion.

As per the data provided by the CPPA, the furnace oil-based power generation cost stood at Rs8.2029 per unit, natural gas-based at Rs5.5094, RLNG based cost at Rs6.9015, nuclear at Rs1.1836 per unit, biogases at Rs5.982 per unit and imported energy from Iran at Rs10.63 per unit.