Some relief expected in power tariffs

NEPRA likely to reduce per unit cost in December

ISLAMABAD:

In this day and age of skyrocketing inflation, it seems that any relief, no matter how small it may be, is welcome. Power consumers are likely to get a relief in electricity prices, following the reduction in tariff of up to Rs1.01 per unit on account of fuel adjustment charges for October 12.

The National Electric Power Regulatory Authority (NEPRA) conducted a public hearing on Tuesday. In a statement, the authority said that it would issue a decision after the scrutiny of data.

During the hearing, it was stated that the actual fuel rate stood at Rs9.25 per unit against the reference price of Rs10.27 per unit, registering a reduction of Rs1.0159 per kilowatt-hour (kWh).

The accumulative impact of relief due to the cut in electricity prices would be Rs 0.14 billion for consumers' electricity bills. It was also pointed out that consumers had paid Rs1.28 per unit fuel adjustment charges in November bills.

The consumers are set to enjoy relief in electricity prices up to Rs1.01 per unit for December. Therefore, the net impact of the increased electricity prices for consumers would be Rs 0.26 per unit in electricity bills.

According to the CPPA-G, 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% of electricity was generated with the help of expensive furnace oil, costing Rs29.14 per unit.

Electricity imports 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.

Winter package for consumers

The power regulator also conducted a public hearing regarding the winter package for electricity consumers. It was just by the regulatory authority's chairman. Many citizens, including stakeholders of the power sector, business organisations, journalists, and others participated in the hearing.

Under the NEPRA Winter Package, the price of an additional unit will be Rs26.7 compared to last year. According to the NEPRA Ministry of Energy, in the winter package, domestic consumers will save 30 percent or Rs11.42 per unit on minimum additional consumption of electricity and 50 percent or Rs26 per unit on maximum additional consumption.

According to NEPRA, in the winter package, industrial consumers will save 18 percent or Rs5.72 per unit on minimum additional consumption of electricity and 37 percent or Rs15.5 per unit on maximum additional consumption.

The package will be valid for 3 months, from December to February. The regulator said it would issue a detailed decision after reviewing stakeholder feedback and further examining the data.

During the public hearing, industrialists from Karachi rejected the winter package. They said that the majority of industries had installed net metering and the government had excluded it from the package.

They further said that they were already paying a high tariff in Karachi and due to this, industries were struggling to survive by installing net metering. They pointed out that industries could not afford a tariff of Rs64 per unit.