The tariff cut will not apply to lifeline consumers using up to 50 units per month and consumers of Karachi Electric Supply Company. CREATIVE COMMONS
After a long time, electricity consumers are going to enjoy some relief as the National Electric Power Regulatory Authority (Nepra) has cut tariff by 30 paisa per unit on account of fuel price adjustment for July.
Nepra took the decision here on Tuesday during a public hearing held to review a petition filed by the Central Power Purchasing Agency (CPPA).
The tariff cut will not apply to lifeline consumers using up to 50 units per month and consumers of Karachi Electric Supply Company.
The regulator chastised power distribution companies for increase in transmission and distribution losses which stood at 2.82% in July, up one percentage point compared to losses in the previous month. Nepra sought a complete report on the subject.
During the hearing, Nepra was told that the increase in losses reflected poor response of power distribution companies which could not curb theft and wastage. This came despite the launch of a crackdown by the government on people involved in power theft. Electricity connections of many illegal consumers had been cut off in the drive.
In the petition submitted to the regulator, the CPPA had sought a reduction of Rs0.2937 in power tariff compared to reference fuel price of Rs7.0662 per unit for July. Actual fuel price was calculated at Rs6.7685 per unit.
CPPA said it sold 9.61 billion gigawatt hours (GwH) of electricity to distribution companies at a total price of Rs65 billion in July.
In the month, the country generated an average 3,966MW of hydroelectric power, which accounted for 40% of total supply. Power produced from this source costs an average Rs0.16 per unit.
Power production through coal cost Rs3.61 per unit, diesel-based production cost Rs20.45 per unit, residual fuel oil cost Rs15.86 per unit, gas cost Rs5.004 per unit, nuclear Rs1.3272 per unit and power imported from Iran cost Rs9.97 per unit.
Published in The Express Tribune, August 21st, 2013.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS (1)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
Karachiites are always considered as children of the step mother, not only by KESC, but also by the Provincial Government of Sindh, as well as by the Fedral Government.
Who do the authorities think of ordinay and middle class people of Karachi?
Are they all muti-millionaires and capable of paying the increase to every Private, Semi Government, Federal Government or to Autonoumous Bodies?
This is one of the reason's that the main reason of unrest in Karachi is that there is three generations gap between the people of Karachi and people sittng at the helm of the affairs in rest of the country.