Power tariff likely to be cut by 63 paisa

NEPRA orders study on adjusting tariffs amid changing demand pattern

ISLAMABAD:

Consumers are set to enjoy a reduction in electricity rates up to Rs0.63 per unit next month. The National Electric Power Regulatory Authority (Nepra) has directed policymakers to conduct a study to adjust time-of-use tariff due to the change in demand pattern.
The regulator gave the order while conducting a public hearing on slashing power tariff by Rs0.63 per unit on account of fuel cost adjustment (FCA) for November 2024.
Central Power Purchasing Agency-Guarantee (CPPA-G) demanded Rs47 billion in the year 2023, Rs56 billion in the year 2024 and Rs2.2 billion in November 2024 alone for partial load due to the change in demand pattern of electricity.
Keeping that in view, Nepra told policymakers to conduct a study on the demand pattern, so that time-of-use tariff could be adjusted.
CPPA-G had submitted a request for a reduction of 63 paisa per unit under FCA, Nepra said. This will be applicable to all consumers of DISCOs except for lifeline, agricultural, prepaid consumers and electric vehicle charging stations.
During the hearing, Nepra took notice of the continuous delay in completion of the Lahore North Transmission Line and ordered an inquiry. In November 2024, the high-voltage, direct-current (HVDC) line could be used only up to 20%, Nepra said, adding that the authority also expressed concern over the delay in expansion of coalmines.
It said that the government should play its role in resolving the problems related to Pakistan Railways so that the cheapest electricity could be provided to consumers. The authority would issue its detailed decision after further examination of data, Nepra said.
The public hearing was informed that Lucky and Pakistan Railways had a dispute over coal yard, which should be resolved. At present, Lucky plant is operating with the help of imported coal.
As per available data, the CPPA-G submitted a request for reduction in electricity rate by Rs0.6335 per unit as compared to the reference fuel charges of Rs7.8609 per unit. The actual cost of power generation for November 2024 came in at Rs7.2274 per unit.
During the month, the share of hydel power in total electricity generation stood at 35.61%, marking a substantial contribution.
Imported coal, which plays a significant role in the energy mix, recorded a generation of 477 gigawatt hours (GWh), accounting for 5.94% of the total production. In comparison, local coal contributed 1,019 GWh (12.68%). The cost of electricity generated from local coal was Rs14.36 per kilowatt-hour (kWh), while the cost of imported coal-based power stood slightly higher at Rs14.92 per kWh. Oil-based fuels, including high-speed diesel (HSD) and residual fuel oil (RFO), had negligible contributions to the energy mix.
Natural gas featured prominently, with local gas contributing 826 GWh (10.68%) at a cost of Rs11,533 million, translating into a generation rate of Rs13.44 per kWh. RLNG added another 907 GWh to the energy mix at a significantly higher cost of Rs21,031 million.