Rs3.20 per unit power tariff relief on the anvil

ISLAMABAD: In a pleasant surprise the electricity consumers are set to get a relief of Rs3.20 per unit as Central Power Purchase Agreement (CPPA) has submitted its petition with National Electric Power Regulatory Authority (Nepra) seeking reduction of power tariff by Rs3.20 per unit.
According to the officials, all electricity consumers except K. Electric consumers will get Rs20 billion benefit for the likely reduction for the month of December 2014.
The CPPA has under the monthly fuel adjustment formula deposited its petition with the regulator asking for decrease in the power tariff for the month of December 2014 for which the reference fuel price for electricity generation was fixed at Rs9.53 per unit, but the factual price has been Rs6.33 per unit.
In the same month, the power distribution companies (Discos) sold out 6.57 billion units. The tumbling prices of furnace and diesel oil caused reduction in the fuel cost of electricity generation. For the month of December 2014, the fuel cost for electricity based on coal stayed at Rs4.49 per unit, on diesel Rs19, furnace oil Rs12.38, gas Rs3.57 and nuclear-based electricity remained at Rs1.18 per unit. The electricity from Iran was imported for the month of December at Rs10.20 per unit.
On the petition of CPPA, Nepra will hold the hearing on January 29, 2015 and is likely to grant relief of Rs3.20 per unit.