Over one-rupee reduction in tariff likely

NEPRA sets public hearing for Nov 26 for stakeholders' feedback

ISLAMABAD:

Consumers of electricity are set to enjoy a reduction of over one rupee in electricity tariff on account of fuel charges adjustment for October 2024.

The National Electric Power Regulatory Authority (Nepra) has announced that it will conduct a public hearing to consider the proposed fuel charges adjustment for ex-Wapda distribution companies.

It follows a request from the Central Power Purchasing Agency-Guarantee (CPPA-G), which has sought a decrease of Rs1.0159 per kilowatt-hour (kWh) in electricity price on account of October fuel charges revision compared to the previously approved reference price.

According to the CPPA-G, the reduction is being sought in the wake of variations in costs of fuel sources used to generate electricity in October.

For tariff revision, the CPPA-G has provided data, which gives details of fuel costs for different power generation sources.

During the month under review, hydel generation continued to be the largest contributor, making up 31.06% of total power production.

Imported coal accounted for 8.79% of the electricity generation mix at a higher cost of Rs16.9110 per kWh.

The share of electricity produced through local coal came in at 14.7% at a cost of Rs11.18 per unit. Only 0.02% electricity was generated with the help of expensive furnace oil, costing Rs29.14 per unit.

Electricity import from Iran comprised 0.41% of the total at a price of Rs25.3 per unit. Re-gasified liquefied natural gas (RLNG)-based electricity played a significant role, constituting 19.51% of total generation at a cost of Rs22.6426 per kWh.

Electricity production with the help of local gas supplies contributed 8.05%, costing Rs14.2504 per kWh. Nuclear power was among the least expensive, having a 14.05% share in total generation at a price of Rs1.5122 per kWh.

Despite these mixed fuel sources, the overall cost of electricity generation for October 2024 came in at Rs9.2593/kWh after adjusting transmission losses, sales to independent power producers (IPPs) and other factors.

The proposed reduction of Rs1.0159/kWh was sought compared to the reference price of Rs10.2752/kWh as actual cost stood at Rs9.2593/kWh for the consumers of ex-Wapda distribution companies.

Nepra has invited all interested parties and persons to participate in the upcoming hearing scheduled for November 26 and voice their objections and concerns, either in writing or orally.

The public hearing is a critical step in ensuring transparency and accountability in the adjustment process where stakeholders are encouraged to engage in the decision-making process.

Following the hearing, Nepra will consider all the feedback and make a final decision on the proposed fuel charges adjustment. The revised tariff, if approved, will be published in the official Gazette.