NEPRA approves Rs3.11-per-unit reduction in power tariff

Published: December 28, 2017


ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) approved on Thursday a Rs3.11-per-unit reduction in power tariff on account of fuel adjustment for the month of November 2017.

In a public hearing held on a petition filed by the Central Power Purchasing Agency (CPPA-G), Nepra decided that a relief of Rs3.11 per unit shall be passed on to the consumers for the month of November.

The CPPA had filed the petition requesting a decrease of Rs1.47 per unit on account of fuel adjustment. It made the request on a tariff adjustment of Rs15.77 billion, but it was rejected by the power regulator, leading to the higher reduction in tariff.

The benefit will now amount to around Rs25 billion and the relief will be given in next month’s bills. The public hearing was chaired by Nepra Chairman Tariq Sadozai.

This adjustment will be available to domestic consumers throughout Pakistan, except for K-Electric consumers. Domestic consumers using up to 300 units per month will also be excluded from the adjustment.

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The CPPA-G filed the petition before the power regulator for a tariff cut on behalf of ex-Wapda distribution companies. In its petition, the CPPA-G reported that it had charged consumers a reference tariff of Rs7.3040 per unit in November against the actual fuel cost of Rs5.8313 per unit, requesting a reduction of Rs1.4727 per unit.

The reduction in actual generation cost was mainly because of a decline in fuel prices, zero use of high speed diesel in power plants and higher contribution from the cheapest source – hydropower.

During the past, there was more use of high speed diesel in power plants, adding billions of rupees in total energy costs borne by consumers. However, the major decline in power tariff was due to zero use of high speed diesel in November 2017.

According to the CPPA-G, about 7,170.43 GWh (Gigawatt hours) were generated in November and 6,994.47 GWh delivered to distribution companies due to about 2.27 % transmission and distribution losses.

It said that the share of hydropower production in the overall energy mix in November stood at 30.86% compared to 23.96% in October.

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Wind and solar plants together contributed about 0.99 % and 0.59% energy respectively at no fuel cost.

Power generation from furnace oil-based power plants was 9.04% compared to 25.03% in October at a cost of Rs9.03 per unit. Similarly, natural gas-based generation was 24.80% in November at a cost of Rs4.58 per unit. The generation from imported liquefied natural gas (LNG) also contributed 9.34% to the overall power supply at a rate of Rs7.89 per unit.

The overall energy contribution from coal was 13.41% against 6.75% in October and its fuel cost of generation stood at Rs4.29 per unit.

The share of electricity imported from Iran contributed around 0.57% against 0.41% to the energy pool earlier with a cost of Rs10.63 per unit. Earlier, Pakistan had been importing 73 MW which has increased to 100 MW now.

The CPPA said total generation cost of electricity was Rs25.24 billion or Rs3.52  per unit, while 2.27% lesser power was supplied to distribution companies at a cost of Rs40.78 billion or Rs5.8313 per unit.

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