Fuel price adjustment: Power tariff jacked up Rs2.24 for January

Separately, Nepra announces decrease of Rs0.27 per unit for February.

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has decided to reduce power tariff by Rs0.27 per unit for the month of February keeping in view the actual cost of fuel consumed for electricity production.

At the same time, the regulator issued a notification, increasing the power price by Rs2.24 per unit for January on account of fuel price adjustment.

The regulator gave the go-ahead for tariff reduction during a public hearing here on Tuesday with Nepra Vice Chairman Khawaja Muhammad Naeem in the chair.

During the proceedings, the Central Power Purchasing Agency (CPPA) said fuel cost was calculated at Rs7.58 per unit against reference price of Rs7.84 in February. In the month, total power production cost stood at Rs44.49 billion, generating 5.868 billion units.



It said power producers did not consume expensive high-speed diesel for generating electricity. Power was produced with the help of coal, costing Rs4.49 per unit, furnace oil cost Rs15.96 per unit, gas Rs4.33, nuclear Rs1.32 and electricity import from Iran Rs10.55.

According to the notification issued by Nepra, power distribution companies would get an extra Rs12 billion from the consumers in April bills by increasing the tariff by Rs2.24 per unit for January.

What was interesting to note was that the CPPA had sought a tariff rise of Rs2.19 per unit, but the regulator increased the price by Rs2.24.

However, lifeline consumers who consume up to 50 units per month and consumers of K-Electric, formerly Karachi Electric Supply Company, and Peshawar Electric Supply Company (Pesco) would not be affected by the tariff revision.

Justifying the rise in tariff, Nepra said power companies produced electricity with the help of expensive high-speed diesel and furnace oil during the month.

Published in The Express Tribune, March 26^th, 2014.

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