ISLAMABAD - Central Power Purchase Agency on Thursday sought Rs2.05 per unit reduction in power tariff under monthly fuel price adjustment for the month of March 2015.

In a request submitted to the National Electric Power Regulatory Authority (NEPRA), the CPPA reported that 6344 GWH electricity worth Rs38,328 million was delivered to Discos. The average Rs/Kwh or per unit electricity price was calculated 6.0412, which was almost Rs2 less than the reference fuel charges set by Nepra. Authority has set Rs 8.0985 per kWH reference charges for year 2014-15. According to the data sheet submitted by the CPPA 1364 GWh hydel energy was produced during the said month. Interestingly, the column which shows the calculated total cost of the electricity generated by hydel and per unit cost is blank. Energy produced from High Speed Diesel remained most expensive and per unit cost remained at Rs. 13. The cheapest electricity was Rs. 1.18, produced from nuclear. The total energy generated was 6541 Gwh, while its cost was Rs38,507 million and the per unit cost was Rs. 5.8869. After line losses of almost 3 percent of total energy production the per unit cost swelled to Rs. 6.0412.

NEPRA has decided to hear the petition on June 2 while Nepra to decide government request of withdrawing subsidy. In a separate case the authority would hold a public hearing on Friday (Today) on governments request to reconsider the 2014-15 tariff, authority announced last month for nine ex-Wapda distribution companies seeking increase under two surcharges in the name of tariff rationalisation and financing cost.

 Government has sought three surcharges namely Tarrif rationalisation surcharge, Neelum Jehlum Surcharge, and debt service charge. In the application it has been proposed that the collection of Neelum Jehlum surcharge would be deposited by the x-Wapda distribution companies in a fund called Neelum Jehlum Hydro Project Development Fund for the exclusive use for the 969 MW project. According to request any tariff reduction under the monthly fuel price adjustment due to any decrease in oil prices would not be passed on to the consumers. In the past few months, the consumers got a relief of Rs2-4 per unit in the monthly fuel price adjustment following the plunge in oil prices, in international market as well as lower market, which sink to around fifty percent since mid of last year. In the request tariff reduction to domestic consumers has been taken back arguing that they already enjoy subsidised rates. Tariff rationalisation will be done to the extent possible in order to eliminate subsidy for the industrial, commercial and bulk consumers and create a level playing field by providing electricity at comparable prices to all industrial users.