Tariff cut of Rs1.03 expected

The National Electric Power Regulatory Authority (Nepra) is likely to slash power tariff by Rs1.035 per unit as part of monthly fuel price adjustment for December 2024, which will provide some relief to electricity consumers, who are bearing very high tariffs.

The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a formal request to Nepra on behalf of power distribution companies (DISCOs), proposing a tariff reduction of Rs1.035 per kilowatt-hour (kWh) compared to the reference fuel cost of Rs10.6364

per kWh.

Nepra has scheduled

a public hearing for January 30 to assess the proposed tariff revision and its impact on the power sector. If the petition is approved, electricity consumers will get refund in February bills.

The CPPA-G application stated that a total of 7,516 gigawatt hours (GWh) of electricity was delivered to DISCOs in December 2024 at an average cost of Rs9.6011 per unit, which translated into a total cost of Rs72.164 billion. It also included the demand for recovery of previous adjustment of Rs2.453 billion from consumers.

During December, hydroelectric power contributed 1,778 GWh, or 22.8% of the total electricity generation, at zero cost. Local coal-fired power plants generated 784 GWh at Rs17.66 per unit while plants running on imported coal produced 124 GWh at Rs19.1529 per unit.

Gas-based power plants contributed 960 GWh (12.3%) at Rs13.408 per unit and re-gasified liquefied natural gas (RLNG)-fired power plants generated 1,615 GWh, representing 20.7% of the energy mix at a higher cost of Rs22.73 per unit.

Nuclear power plants delivered 2,065 GWh, or 26.48%, at the lowest cost of Rs1.698 per unit. Meanwhile, electricity import from Iran accounted for 33 GWh, which came at a significantly higher cost of Rs28.0589 per unit.

Renewable energy sources also had their share in the energy mix. Wind power production came in at 262 GWh (3.35%), solar plants generated 76 GWh (0.97%) and bagasse-based plants contributed 101 GWh at Rs5.9822 per unit.

If Nepra approves the tariff reduction request, it will offer some respite to consumers by lowering their bills for February. However, the revision will not apply to lifeline consumers, electric vehicle charging stations and K-Electric consumers.

Nepra will review the application and consider the input from stakeholders at the public hearing. Interested parties have been invited to come up with written or verbal objections during the scheduled proceedings.