Power tariff cut by Rs3.94/unit for April
The fuel cost of electricity delivered to distribution companies was calculated at Rs4.2118 per unit in April
PHOTO: REUTERS
ISLAMABAD:
Pakistan’s top power regulator has cut the tariff by Rs3.94 per unit for the month of April 2016 on account of fuel adjustment charges keeping in view international oil prices. K-Electric and agricultural consumers and those domestic users using below 300 units per month will not enjoy this relief.
The fuel adjustment charges will be passed on to consumers in the electricity bills of July.
The Central Power Purchasing Agency (CPPA) had requested the National Electric Power Regulatory Authority (Nepra) to reduce the tariff by Rs3.41 per unit.
The approval came on Thursday at a monthly public hearing on the price adjustment mechanism. Nepra Vice-Chairman Himayatullah Khan chaired the hearing.
The fuel cost of electricity delivered to distribution companies was calculated at Rs4.2118 per unit in April against the reference price of Rs7.6273 per unit, which suggested the consumers should be returned Rs3.4155 per unit.
The power distribution companies had recovered an additional Rs30 billion through electricity bills from consumers in April, it was observed
The National Transmission and Despatch Company (NTDC) officials admitted that merit order to operate power plants on cheaper fuel was not observed during April. Furnace oil-based power plants were not operated at full capacity despite low oil prices.
The meeting participants noted that consumers were denied a relief worth Rs4 billion by operating power plants on liquefied natural gas (LNG) instead of furnace oil. Around 13 per cent less power was generated through furnace oil while 10 per cent additional power through LNG was produced.
The Nepra vice-chairman said the consumers were deprived of relief by generating power through expensive fuels.
Sindh’s member Masoodul Hassan said the NTDC had not taken care of consumer rights by generating power through expensive fuels.
The total energy generated from all fuel sources stood at 7813.97 gigawatt hours (GWh) in April at a cost of Rs28.18 billion. The CPPA supplied 7631.94 GWh to the distribution companies at a cost of Rs32.14 billion. The power firms in turn faced a net loss of 180.09 GWh, accounting for 2.30 per cent of total energy supplies.
In April, hydel generation was recorded at 2385.69 GWh, which was 30.53 per cent of the total generation. Generation through high speed diesel was 12.96 GWh (0.17 per cent) while its cost was Rs11.85 per unit.
Power generation through gas was 2524.12 GWh (32.30 per cent) and furnace oil 2251.30 (28.81 per cent).The cost of power generation through gas was Rs5.73 per unit and Rs5.38 through furnace oil.
Published in The Express Tribune, May 27th, 2016.
Pakistan’s top power regulator has cut the tariff by Rs3.94 per unit for the month of April 2016 on account of fuel adjustment charges keeping in view international oil prices. K-Electric and agricultural consumers and those domestic users using below 300 units per month will not enjoy this relief.
The fuel adjustment charges will be passed on to consumers in the electricity bills of July.
The Central Power Purchasing Agency (CPPA) had requested the National Electric Power Regulatory Authority (Nepra) to reduce the tariff by Rs3.41 per unit.
The approval came on Thursday at a monthly public hearing on the price adjustment mechanism. Nepra Vice-Chairman Himayatullah Khan chaired the hearing.
The fuel cost of electricity delivered to distribution companies was calculated at Rs4.2118 per unit in April against the reference price of Rs7.6273 per unit, which suggested the consumers should be returned Rs3.4155 per unit.
The power distribution companies had recovered an additional Rs30 billion through electricity bills from consumers in April, it was observed
The National Transmission and Despatch Company (NTDC) officials admitted that merit order to operate power plants on cheaper fuel was not observed during April. Furnace oil-based power plants were not operated at full capacity despite low oil prices.
The meeting participants noted that consumers were denied a relief worth Rs4 billion by operating power plants on liquefied natural gas (LNG) instead of furnace oil. Around 13 per cent less power was generated through furnace oil while 10 per cent additional power through LNG was produced.
The Nepra vice-chairman said the consumers were deprived of relief by generating power through expensive fuels.
Sindh’s member Masoodul Hassan said the NTDC had not taken care of consumer rights by generating power through expensive fuels.
The total energy generated from all fuel sources stood at 7813.97 gigawatt hours (GWh) in April at a cost of Rs28.18 billion. The CPPA supplied 7631.94 GWh to the distribution companies at a cost of Rs32.14 billion. The power firms in turn faced a net loss of 180.09 GWh, accounting for 2.30 per cent of total energy supplies.
In April, hydel generation was recorded at 2385.69 GWh, which was 30.53 per cent of the total generation. Generation through high speed diesel was 12.96 GWh (0.17 per cent) while its cost was Rs11.85 per unit.
Power generation through gas was 2524.12 GWh (32.30 per cent) and furnace oil 2251.30 (28.81 per cent).The cost of power generation through gas was Rs5.73 per unit and Rs5.38 through furnace oil.
Published in The Express Tribune, May 27th, 2016.