ISLAMABAD - National Electric Power Regulatory Authority (Nepra) yesterday approved Rs2.80 per unit reduction in power tariff for distribution companies for June under the monthly fuel adjustment formula.

The authority gave the approval while hearing a petition filed by the Central Power Purchase Agency (CPPA) over the last month’s fuel price adjustment. The CPPA proposed Rs2.338 per unit reduction in fuel-based power tariff for June over the reference fuel charges of Rs6.828 per unit.

The CPPA reported that the diesel-based power generation cost stood at Rs11.5 per unit, furnace oil-based at Rs6.828, gas-based at Rs5.124, RLNG based generation Rs5.525, nuclear at Rs1.16 per unit and imported energy from Iran at Rs10.60 per unit.

It added that 10.47 billion units were supplied to distribution companies in June, while the generation was of 10.736 billion of which the transmission losses were 2.46 per cent (or 264.47 million units) and sale to IPP was 1.88 million units.

The agency said the hydropower generation contributed 34.83 per cent while furnace oil based plants generated 31.86 per cent energy. Natural gas-based plants generated 17.92 per cent electricity and RLNG-based plants contributed 6.92 per cent electricity to the national grid followed by 3.93 per cent of nuclear, 1.84pc of diesel and 1.03pc of wind, it added.

Nepra Chairman Brig (r) Tariq Saddozai concluded that the distribution companies had charged Rs6.828 per unit on account of fuel cost to consumers in June but the actual fuel cost was ‘lowered significantly’.

The authority noted that the actual cost of the electricity generation for June was Rs 4.489 per unit. It decided that Rs2.80 per unit should be returned to the consumers, who were already been charged Rs.6.828 per unit. The decision will help give Rs 15 billion benefit on the account of cheaper cost of fuel for power generation’ to consumers.

This adjustment/relief will be available to the domestic consumers in entire Pakistan, except in Karachi and the lifeline consumers – K-Electric is a privatised company and distributing its own-generated electricity while lifeline consumers have already been provided subsidized electricity. This compensation will be adjusted in the August electricity bills.

Nepra also expressed serious concern over the underutilisation of capacity of Nandipur Power Plant that generated 230MWs in June instead of 425 megawatts.

According to the officials of National Transmission and Despatch Company (NTDC), the underutilization cost billions of rupees to national exchequer. On the directives of the government, the Chinese contractor company was not penalised, Nepra were told. It was further informed that despite a year has been passed of its commissioning/commercial operation date (COD), the plant did not operate with full capacity.