NEPRA allows Rs0.45 per unit cut in K-Electric tariff

Reduction comes on account of fuel price adjustment for Feb

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has agreed on a reduction of Rs0.45 per unit in the power tariff for K-Electric consumers on account of fuel price adjustment for February 2016.

Nepra took the decision at a public hearing in response to a petition filed by the K-Electric management that sought approval for a tariff cut of 44.91 paisa per unit because of variation in fuel cost.

The hearing was held on Thursday under the chairmanship of Nepra Vice Chairman Major (Retired) Haroonur Rasheed.

In its petition, K-Electric pointed out that it faced a fuel cost variation of Rs462.542 million in electricity production from external and internal resources.

A cost variation of Rs283.992 million was on account of power generation from the internal resources and in the case of external resources, the fuel cost variation was calculated at Rs178.549 million. This resulted in a reduction of 44.919 paisa per unit of electricity for the month of February.

During the month, K-Electric supplied 1,029.728 million units of electricity to the consumers.

The regulator, however, aired concern over power generation with the help of expensive fuel by the K-Electric management. It noted that the power utility run its plants on pricey fuel in violation of the merit order.

Nepra suggested that consumers could enjoy a relief of millions of rupees if power plants were run on cheaper fuel sources and asked the company to submit a report on operating the plants on expensive fuel.

Published in The Express Tribune, April 15^th, 2016.

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