Lower cost: NEPRA approves 82 paisa cut in power tariff

Fresh rates will not apply to lifeline consumers using less than 50 units per month and K-Electric consumers.

Our Correspondent June 25, 2014

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has approved a Re0.82 per unit cut in power tariffs on account of the monthly fuel price adjustment for the month of May 2014.

However, both lifeline consumers who use less than 50 units per month and K-Electric consumers, whose tariff is determined separately, won’t be affected by the revised rates.

According to Nepra officials, the lower electricity rate will provide a relief of Rs8 billion.

The power regulator decided to cut power tariffs in a public hearing, chaired by Nepra acting chairman Habibullah Khilji.

The regulator expressed concern over not completing the transmission line within the stipulated time for the distribution of power from Uch-II power plant and sought a detailed report from the National Transmission and Dispatch Company (NTDC).

The Central Power Purchasing Agency (CPPA) had sought a 81 paisa per unit cut in power tariff on account of lower purchase cost of electricity and better energy mix as part of the monthly fuel price adjustment from Nepra through a tariff petition.

The CPPA, on behalf of Discos except K-Electric, requested Nepra to pass on the impact of the lower purchase cost in May to consumers through electricity bills next month as average fuel cost in May had worked out to be Rs7.56 per unit against the approved reference cost of Rs8.37 per unit.

The CPPA in its tariff petition has said that about 34.5% of total electricity generation during the month of May was contributed by hydropower resources while 36.6% supply came from furnace oil-based power plants. It said gas based power plants contributed about 22.45%.

A total of 8,494 gigawatt hours (Gwh) of electricity was generated in May but 160 Gwh (or about 1.88%) of energy was wasted due to transmission losses. Therefore, a net electricity of 8,328 Gwh was delivered to distribution companies during the month at a total cost of Rs63 billion, the CPPA said.

Published in The Express Tribune, June 25^th, 2014.