NEPRA slashes tariff by Rs0.43 per unit

CPPA-G to reimburse power consumers for month of April

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) on Wednesday approved to cut electricity rates by Rs0.43 per unit on account of fuel adjustment for the month of April 2021.

Central Power Purchasing Agency (CPPA-G) will reimburse Rs0.43 per unit or Rs4.4 billion that it had charged over and above the actual electricity cost from the power consumers during April.

In a public hearing on CPPA-G’s petition for April on account of fuel adjustment, the regulator noted that after the calculation CPPA-G needs to return Rs0.86 per unit, against Rs0.84 per unit requested by the petitioner, to power consumers for the month of April. However, half of this amount (Rs0.43 per unit) will be adjusted against previous adjustments for the past months.

The hearing, which was presided over by Nepra Chairman Tauseef H Farooqi, also noted that instead of RLNG, expensive fuel was utilised to run the power plants in violation of the merit order.

During the hearing, Nepra officials said that running the plants without merit order cost the consumers’ multimillion rupee worth losses. The power companies had burdened the consumers with multimillion rupees by not using RLNG for power generation.

Nepra approved a reduction of Rs0.86 per unit in fuel adjustment. However, the regulator allowed past adjustment of Rs4.47 billion to CPPA, depriving consumers of half (Rs0.43 per unit) of the relief and allowed it to pass on another half of the amount (Rs0.43 reduction) to consumers. The consumers will get their extra charged Rs4.4 billion in the next bills. The decision will not apply to consumers with 100 units and K-Electric consumers.

Speaking on the occasion, the Nepra chairman said that he had written to the government to not carry out load-shedding but the government has to do this, adding that the non-operation of better capacity plants was an additional burden on the consumers.

In collaboration with the ministry, a monthly reporting system has been developed on revolving credit. A detailed decision and notification of reduction in electricity prices will be issued on Friday.

The CPPA-G had requested Nepra to approve a refund of Rs0.84 per unit under the fuel cost adjustment mechanism for the consumers of distribution companies overcharged in April 2021. In its tariff petition, CPPA-G said that since consumers were charged the reference fuel charges of Rs6.6087 per unit whereas the actual fuel charges were Rs5.7680 per unit, a reduction of Rs0.84 per unit has been sought.

The total energy generated in April was 10,481 GWh, at a basket price of Rs5.5747 per unit. The total cost of energy was Rs58.428 billion. CPPA-G also sought supplemental charges of Rs1.132 billion.

As per the data, hydel generation was 257,258 GWh or 24.55% of the total generation. Power generation from coal-fired power plants was 243,988 GWh or 23.28% of total generation at a rate of Rs8.00 per unit, from RFO it was 147.85 GWh or 1.47% at Rs12 per unit.

Electricity generation from natural gas was 1,278 GWh or 12.19% at Rs7.4599 per unit, RLNG was 257,155 GWh or 24.54% at Rs9.8889 per unit. Nuclear power contributed 1,067 GWh or 10.18% at Rs1.1052 per unit, and electricity imported from Iran was 44.84 GWh at Rs9.4093 per unit.

Mixed generation was 22.74 GWh at a price of Rs5.3932 per unit and generation from baggasse contributed 71.18 GWh at Rs5.9822 per unit. Meanwhile, the energy generated from wind contributed 197.30 GWh, or 1.88% of total generation and solar 68.03 GWh or 1.88%.

Published in The Express Tribune, June 3^rd, 2021.

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