Fuel price adjustment: NEPRA cuts tariff for second month in a row

Approves Rs0.08 per unit reduction in power price for June.

Zafar Bhutta July 24, 2014


The National Electric Power Regulatory Authority (Nepra) has approved a reduction of Rs0.08 per unit in power tariff on account of monthly fuel price adjustment for June 2014.

This is the second consecutive month consumers will be enjoying a cut in power price following variation in fuel prices. The regulator had approved a reduction of Rs0.82 per unit for May on account of fuel price adjustment mechanism.

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 rate.

The regulator decided to bring down power tariff in a public hearing, chaired by Nepra Vice Chairman Habibullah Khilji.

It also sought a detailed report from the National Transmission and Dispatch Company (NTDC) about government claims of an increase in power generation. It pointed out that outages had increased despite the rise in power production.

NTDC officials told the regulator that Nandipur power plant had shut down after five days due to high power cost at Rs42 per unit because of diesel consumption for electricity production.

“It is the government’s decision to run the Nandipur plant, so we are helpless,” an official said, adding the plant was operated without their consent.

During last year, the officials said maximum power generation was 16,176 megawatts, which dropped to 15,700MW this year.

The Central Power Purchasing Agency (CPPA) had sought a Rs0.0689 per unit cut in power tariff on account of lower purchase cost of electricity as part of the monthly fuel price adjustment from Nepra through a tariff petition.

The CPPA, on behalf of distribution companies except for K-Electric, requested Nepra to pass on the impact of lower purchase cost in June to consumers through electricity bills of next month as average fuel cost was calculated at Rs7.44 per unit against approved reference cost of Rs7.51 per unit.

The CPPA said about 36.47% of total electricity generation in June was contributed by hydropower resources while 34.4% supply came from furnace oil-based plants. Gas-based plants contributed about 21.93%.

A total of 9,451.58 gigawatt hours (Gwh) of electricity was generated in June at a cost of Rs69.51 billion but 99.18 Gwh (or about 1.05%) was wasted due to transmission losses. Therefore, a net electricity of 9,347.27 Gwh was delivered to distribution companies, the CPPA said.

Published in The Express Tribune, July 24th,  2014.

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incognito59 | 9 years ago | Reply

0.08 paisa!!!!!!!!!!hahahah when they raise it is in rupees! What a silly reduction duh!

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