Power tariff reduced by Rs0.9 per unit

It will provide cumulative relief of Rs1.1b to consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday approved a reduction of Rs0.9 per unit in electricity tariff for all power distribution companies, except for K-Electric, on account of fuel cost adjustment for June 2019.

The decision was taken by the regulator at a public hearing held to review a petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the distribution companies.

Nepra said the cost of fuel was a little lower in June while power consumers were charged higher rates.

The tariff reduction will be adjusted in electricity bills of August 2019. It will have a cumulative impact of Rs1.1 billion. The adjustment will, however, not be applicable to lifeline consumers as well as K-Electric consumers.

The CPPA, in its petition, had sought permission for increasing consumer tariff by Rs0.0669 per unit. It told the regulator that it had charged a reference fuel price of Rs5.1130 per unit in June while the cost came in at Rs5.180 per unit.

The CPPA pointed out that a total of 13,157.15 gigawatt-hours (GWh) of electricity was generated in the month at a total cost of Rs72.31 billion. Net electricity delivered to the distribution companies was 12,818.61 GWh whereas transmission losses came in at 307.59 GWh or Rs0.1214 per unit.

During the month under review, the highest 29.19% (or 3,840 GWh) of electricity was generated from the cheap hydel sources, followed by re-gasified liquefied natural gas (RLNG)-based electricity that contributed 3,613.71 GWh (or 27.47%) at a cost of Rs10.201 per unit.

Around 1,880.77 GWh (or 14.29%) of electricity was generated from natural gas at a cost of Rs6.1945 per unit. Coal-fired power production contributed 2,037.45 GWh, accounting for 15.49% of total generation at a cost of Rs6.0921 per unit.

Nuclear electricity had a share of 4.09%, or 538.43 GWh, which was produced at a cost of Rs1.1147 per unit.

The CPPA purchased 694.84 GWh of electricity from residual fuel oil (RFO)-based power plants at a cost of Rs14.287 per unit. RFO-based electricity's share was calculated at 5.28%.

From wind, 393.14 GWh (or 2.99%) of electricity was generated whereas no electricity was generated from high-speed diesel.

From solar resources, 63.92 GWh of electricity was generated with a share of 0.49%. From bagasse, 34.55 GWh was generated at a cost of Rs6.2089 per unit.

In June, Pakistan imported 48.79 GWh of electricity from Iran at a cost of Rs11.5709 per unit.