ISLAMABAD:The top power regulatory body has decided to cut electricity tariffs by Rs2.80 for June 2016 in order to adjust for cheaper fuel prices in the international market.
However, K-Electric and agricultural consumers and those domestic users who consume less than 300 units per month will not be enjoying this relief.
Following the tariff cuts by the National Electric Power Regulatory Authority (Nepra), consumers will see the fuel adjustment charges reflected in their September power bills. The cut is expected to provide customers relief worth around Rs21 billion.
Tariff adjustment: NEPRA’s differences with K-Electric continue
The Central Power Purchasing Agency (CPPA) had earlier in July requested Nepra to reduce the tariff by Rs2.33 per unit. On Saturday, during the monthly public hearing on the price adjustment mechanism, the regulator decided to cut tariffs.
According to Nepra, the fuel cost of electricity delivered to distribution companies was calculated at Rs4.48 per unit in June against the reference price of Rs6.82 per unit, which suggests that consumers were entitled to receive Rs2.33 per unit.
With power distribution companies recovering an additional Rs21 billion through electricity bills for June, these will be refunded to power consumers as cuts in bills for September.
The total energy generated in the country from all sources stood at 10,736.85 gigawatt hours (GWh) in June at a cost of Rs41.08 billion. The CPPA supplied 10,470.49 GWh to the distribution companies at a cost of Rs47 billion. The power firms in turn faced a net loss of 264.47 GWh, accounting for 2.46 per cent of total energy supplied.
In June, hydel generation was recorded at 3,739.78 GWh, which accounted for 34.83 per cent of the all power generated in the country. Companies generated 197.97 GWh (1.84 per cent) of power using high speed diesel at a cost of Rs11.50 per unit. Power generated through RLNG stood at 743.21Gwh (6.92 per cent) at a cost of Rs5.52 per unit.
Power generated through gas stood at 1,923.67 GWh (17.92 per cent) while that using furnace oil stood at 3,420.79 GWh (31.86 per cent).The cost of power generated was Rs5.12 per unit and Rs6.82 per unit through gas and furnace oil respectively.
Nepra slashes power tariff by Rs4.36
During Saturday’s meeting, Nepra’s Chairman expressed serious concerns about generating power using expensive fuels.
The meeting noted also that the government had failed to operate the Nandipur power plant at full capacity with NTDC officials revealing that the plant was producing around 230 megawatts of power whilst it has a capacity of producing 425MW. In addition to causing a loss of Rs4.46 billion, it had incurred the wrath of the CPPA which has started imposing penalties on Nandipur for violating its agreement.
In this regard, Nepra refused to pass on the burden of expensive power generated through the Nandipur plant.
