NEPRA lowers power tariff by Rs2.6

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday decided to cut the power tariff by Rs2.60 per unit for August 2015 on account of fuel adjustment.

The refund of Rs22 billion will be passed on to those consumers using below 300 units a month in bills of November 2015. The government has committed to International Monetary Fund, World Bank, Asian Development Bank and Japan International Cooperation Agency to gradually phase out untargeted subsidies, while continuing to protect the most vulnerable consumers.

Nepra took this decision at a public hearing on the monthly fuel adjust mechanism attended by officials of Central Power Purchase Agency (CPPA) and officials of the tariff section of Nepra. CPPA, which is responsible for the purchase and sale of electricity, had proposed Rs2.40 per unit refund to the consumers.

Read: NEPRA refuses to undertake cost audit

According to CPPA’s petition, the fuel cost of electricity delivered to distribution companies (DISCOs) was Rs4.0525 per unit in August 2015 against a reference price of Rs6.4562 per unit, suggesting reimbursement of Rs2.4037 per unit. Total energy generated from all sources was 10,519.2 GWh in August at a cost of Rs43.783 billion (Rs4.1622 per unit). However, CPPA delivered 10,221 GWh to Discos at Rs41.420 billion (Rs4.0525 per unit). The financial impact of transmission losses in August 2015 has been recorded at Rs293.37 million or Rs0.1149 per unit.

In August, hydel generation was recorded at 4,382.39 GWh which was 41.66 per cent of total generation, HSD 279.2 GWh (2.65 per cent share) at a cost of Rs13.8279 per unit, RFO 2,767.4 GWh at a cost of Rs9.3839 per unit, gas 2,684.69 GWh at a cost of Rs4.7794 per unit, nuclear 181.68 GWh at a cost of Rs1.2194 per unit, import from Iran 44.22 GWh at a cost of Rs10.5 per unit and baggasse Rs33.94 GWh at a cost of Rs5.7695 GWh.

However, Nepra’s calculation revealed that average fuel cost of one unit of electricity was Rs3.85 in August 2015.

Read: Ministry of Water and Power questions Nepra report credibility

Nepra member Khawaja Naeem expressed concern on 25 per cent lower generation from Kapco power plant. Nepra has also sought a detailed report from CPPA on lower generation from public sector power plants (Gencos).


Published in The Express Tribune, October 9^th, 2015.