Consumers to see Rs2.3 reduction in Feb bills

Applicable to all consumers of DISCOs except KE, lifeline users

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has notified a reduction in electricity rates by Rs2.32 per unit for consumers of all power distribution companies (Discos) except K-Electric (KE) on account of fuel adjustment for the month of December 2022.

The Central Power Purchasing Agency (CPPA-G) had requested a reduction of Rs2.20 per unit on account of fuel adjustment for the month of December.

The power regulator held a public hearing on January 31, 2023.

Earlier, consumers were charged an additional Rs0.19 per unit on account of fuel adjustment for the month of November 2022. The tariff increase was applicable for one month only.

Now, consumers will be charged Rs2.51 per unit less as compared to November, said Nepra in a statement, adding that this will be applicable only to the bills for the month of February.

It will be applicable to all consumers of Discos except lifeline, domestic consumers using up to 300 units, agricultural consumers and electric vehicle charging stations. Nepra observed that CPPA-G purchased energy of 39.85 GWh from Tavanir, Iran, in December 2022 at a cost of Rs859 million.

The contract between CPPA-G and Tavanir, however, for the import of power up to 104 MV expired on December 31, 2021.

Keeping this in view, Nepra stated that the cost of electricity purchased from Tavanir was being allowed strictly on a provisional basis, subject to its adjustment once the authority decides the extension in the contract between CPPA-G and Tavanir or otherwise.

Allowing the purchase on a provisional basis is to ensure costs don’t pile up and the consumers aren’t burdened.

CPPA-G also claimed a negative amount of Rs611 million as previous adjustment.

Subsequently, however, CPPA-G via email submitted that the previous adjustment of the negative amount worth Rs65.4 million, was classified as fuel cost instead of VO&M due to a classification error.

Published in The Express Tribune, February 17^th, 2023.

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