Nepra increases power tariff by Rs0.50/unit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday allowed the ex-Wapda power distribution companies (Discos) to increase the power tariff by Rs0.50 per unit on account of fuel adjustment for the month of June 2018.

The decision was taken in public hearing conducted by Nepra on the petition filed by the Central Power Purchasing Agency (CPPA). In its petition the CPPA had sought an increase of Rs0.70 per unit in tariff for the month of June however Nepra allowed an increase Rs0.50 per unit. The increase of Rs0.50 per unit will put the burden of Rs6.5 billion to power consumers. This is second time consumers are facing increase in electricity rates.

It is pertinent to mention here that the power regulator had increased power tariff by Rs1.25 per unit for fuel cost adjustment for May 2018 due to use of furnace oil which is expensive than LNG. For the month of June the consumers were going to face increase in power tariff by Rs0.50 per unit.

The CPPA had proposed less increase in power tariff for the month of June due to less use of furnace oil, increase in hydel and LNG based power generation compared to month of May 2018.

According to the petition, submitted by CPPA with Nepra, total energy generated in June 2018 was 12913.86 Gwh at a total price of Rs66.178 billion which is Rs5.1246 per kWh.

The net electricity delivered to power distribution companies (Discos) was 12600.30 Gwh at cost of Rs71.757 billion or 5.69 per kWh. Out of total electricity generation, losses stood at 2.36 % against the losses of 1.82 % in the month of May.

CPPA told the power regulator that actual cost of electricity generation stood at Rs5.69 per unit against reference fuel price of Rs4.99 registering an increase of Rs0.70 per unit. As per the data shared by the petitioner, the share of hydel generation in total energy mix was increased to 27.79 percent or 3589.02 GWh in June from 18.30 per cent in month of May.

In June 1162.50 Gwh Residual Fuel Oil (RFO) based electricity produced at a cost of Rs13.12 per unit and its share was 9 per cent of total generation. In May the power generation from furnace oil-based power plants was 2338.23 Gwh or 19.30 per cent at a cost of Rs12.47 per unit.

The total share of gas based electricity was 2026.03 GWh accounting for 15.69 percent of total generation and its cost of electricity was Rs4.7141 per unit. In May total share of gas based electricity was 1971.34 GWh or 16.27% at a cost of Rs4.8461 per unit. The generation from imported Re-liquefied natural gas (RLNG) also contributed 3252.28 GWh or 25.18 percent in June with the total cost of Rs9.3116 per unit.

In June the overall energy contribution from coal was 1522.47 Gwh which accounts for 11.79 percent of total generation and its cost was Rs5.7587 per unit.