The CPPA told Nepra that actual fuel cost for power generation jumped to Rs11.77 per unit against reference price of Rs9.58 for January. PHOTO: FILE
ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) has allowed power distribution companies to increase electricity tariff by a hefty Rs2.24 per unit on account of fuel price adjustment for January.
The regulator gave the go-ahead during a public hearing here on Thursday with Nepra Vice Chairman Khawaja Muhammad Naeem in the chair.
What was interesting to note was that the Central Power Purchasing Agency (CPPA) had sought a tariff increase of Rs2.19 per unit, but to the surprise of stakeholders present during the hearing the regulator increased the price by Rs2.24 per unit.
However, lifeline consumers who consume up to 50 units per month and consumers of K-Electric, formerly Karachi Electric Supply Company, would not be affected by the tariff revision. The higher tariff will be reflected in the consumer bills of March.
The CPPA told Nepra that actual fuel cost for power generation jumped to Rs11.77 per unit against reference price of Rs9.58 for January. It pleaded that power companies should be allowed to increase the tariff by Rs2.19 per unit to recover the additional cost.
Members of Nepra voiced concern over power production through furnace oil instead of cheaper gas. They noted that the government produced electricity from expensive fuel to minimise load-shedding, but it led to increase in tariff, putting an additional burden on the consumers.
The consumers would be paying an additional Rs6 billion because of reliance on expensive fuel, they said and suggested cheaper electricity could be produced by providing gas to the power plants.
Nepra members also expressed concern over transmission losses, which stood at 35 paisa per unit.
It was observed that power production stood at a lower level in January, but generation cost was high. In the month, 6.19 billion units were produced at a cost of Rs72.97 billion. Average generation cost was Rs11.77 per unit.
Power plants had been generating an average of 8 billion units per month at a cost of Rs54 billion, but in January, the production was comparatively lower while the cost went up.
Clarifying the matter, CPPA representatives said hydroelectric power generation was not up to the mark in the month, and the plants were compelled to bank on furnace oil and other sources of fuel.
In total electricity generation, the share of hydroelectric power was 13%, coal-based energy 0.11%, high-speed diesel 3.07%, furnace oil 54.51%, gas 19.19%, nuclear 7.07% and imports from Iran 0.48%.
Coal-based electricity cost Rs3.61 per unit, high-speed diesel Rs23.07, residual fuel oil (RFO) Rs17.08, gas Rs4.37, nuclear Rs1.32 and imported electricity Rs10.55.
Published in The Express Tribune, March 14th, 2014.
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In public hearing no one asked why we have to pay for stolen electricity.
Would be great if the regulator + wapda official + Nepra official pay was deducted to pay for this theft .. then we will see 0 % theft .
Howsthat