NEPRA approves rate cut of up to Rs1.28/unit

Tariff reduction based on FCA for September – to be set in November bills

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has approved a reduction in electricity rates of up to Rs1.28 per unit on account of fuel charges in September 2024. According to Nepra's statement, the Central Power Purchasing Agency Guarantee Limited (CPPAG) had initially submitted a request for a 71 paisa per unit reduction in fuel charges. The regulator conducted a public hearing on the application on October 30, 2024.

Nepra noted that the August fuel charges adjustment (FCA) also saw a reduction, with a decrease of 86 paisa per unit, and clarified that consumers will benefit from an additional 42 paisa decrease per unit in September's fuel charges adjustment compared to August. After adjusting for these changes, the regulator assessed a National Average Uniform decrease of Rs1.2754/kWh in the applicable tariff for ex-WAPDA distribution companies (XWDISCOs) due to fuel cost variations in September.

Nepra decided, however, that the adjustment will apply to all consumer categories except lifeline consumers, domestic users consuming up to 300 units, Electric Vehicle Charging Stations (EVCS), prepaid electricity users across all categories who opted for a prepaid tariff, and agricultural consumers of all XWDISCOs. Additionally, Nepra clarified that the negative adjustment on account of fuel charge adjustments apply to domestic consumers with Time of Use (ToU) meters, regardless of their consumption levels.

This FCA adjustment will be separately listed on consumers' bills based on units billed in September 2024. XWDISCOs will reflect the fuel charges adjustment for September in their November 2024 billing cycle. XWDISCOs have been instructed to strictly implement these adjustments in accordance with court orders, despite this regulatory directive.

Nepra highlighted that CPPAG procured 40.29 GWh of electricity from Tavanir Iran in September 2024 at a cost of Rs1,045.7 million. However, the contract between CPPAG and Tavanir Iran for up to 104 MW of imported power expired on December 31, 2021. Therefore, Nepra has allowed these charges on a provisional basis, pending a decision on the contract's extension, to avoid accumulating costs and prevent future one-time burdens on consumers.

CPPAG also requested a net positive adjustment of Rs7,504.8 million for previous adjustments. Nepra has instructed CPPAG to provide technically and financially verified data for each generation company regarding the previous month, along with its next FCA request, to ensure timely adjustments.

The National Transmission and Dispatch Company Limited (NTDCL) reported provisional Transmission & Transformation (T&T) losses of 303.776 GWh, or 2.241%, based on energy delivered across its system during September 2024. Additionally, NTDCL recorded T&T losses of 30.079 GWh (2.854%) for the PMLTC (HVDC) line. NTDCL is allowed T&T losses of 2.639% only at 500KV and 220KV network. For PMLTC (HVDC) is allowed T&T losses of maximum up-to 4.3%.

CPPAG also disclosed data on net metering purchases by distribution companies (DISCOs), noting that DISCOs procured 70.35 GWh through net metering in September 2024. Furthermore, 19.17 GWh were supplied by power producers with bilateral contracts with DISCOs in the same period.