Fuel price adjustment: NEPRA increases power tariff by 32 paisa per unit

Tariff hike will apply to all, except for lifeline and KESC consumers.

ISLAMABAD:

There is no relief in sight for power consumers as the National Electric Power Regulatory Authority (Nepra) has increased ppower tariff by 32 paisa per unit on account of fuel price adjustment for September this year.

The tariff hike will be applicable to all consumer categories of power distribution companies, except for lifeline consumers using up to 50 units per month and consumers of Karachi Electric Supply Company (KESC).

Earlier this month, Nepra has already notified an average tariff increase of 30% for domestic electricity consumers effective from October.



The latest tariff revision came during a public hearing conducted by Nepra at its headquarters on Wednesday and chaired by its Acting Chairman Khawaja Naeem.

In its petition, the Central Power Purchasing Agency (CPPA) said for September, Nepra had fixed the reference fuel cost for power generation at Rs6.2493 per unit, though actual cost stood at Rs6.57 per unit.

In the month, CPPA sold more than 9.14 billion electricity units to power distribution companies and fuel cost was calculated at Rs59.84 billion.

CPPA said during transmission of electricity more than 203 million units were lost, constituting 2.5% of the total supply for the month. In reply, Nepra officials expressed concern over the transmission losses and called for taking measures to control them.

CPPA also pointed out that Guddu power plant had been damaged, prompting an investigation and responsibility would be fixed soon.

At the end of the hearing, Nepra allowed an increase of 32 paisa per unit in power tariff. The regulator, however, clarified that the tariff revision would not be applicable to consumers of KESC and those using up to 50 units per month.

In total power generation, the share of hydroelectric power was 44.16%, coal-based electricity 0.07%, high-speed diesel-based power 1.24%, power produced through residual fuel oil 33.35%, gas-fired power 15.01%, nuclear power 4.6%, power import from Iran 0.41% and wind power 0.25%.

The cost of coal-based power was estimated at Rs3.6118 per kilowatt hour, diesel Rs23.01 per kwh, fuel oil Rs15.57 per kwh, gas Rs4.83 per kwh, nuclear Rs1.322 per kwh, power import Rs10.55 per kwh and hydropower less than a rupee.

Published in The Express Tribune, October 24^th, 2013.

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