Relief in store for power consumers in Sept

ISLAMABAD: Consumers are expected to receive relief in their September 2024 bills, as the National Electric Power Regulatory Authority (Nepra) is likely to direct the state-run power distribution companies (Discos) to refund Rs0.3142 per unit for overcharges applied in July 2024. This follows more than a year of significant additional charges on monthly electricity bills.

The Central Power Purchasing Agency (CPPA), on behalf of Discos, has filed a petition with the Nepra, stating its readiness to refund this amount in September bills. The Nepra has accepted the petition and scheduled a public hearing for August 28, 2024, to finalize the decision.

The petition indicates that the reference fuel charges for July 2024 were Rs9.352 per unit, while the total cost per unit amounted to Rs9.0378. The CPPA seeks approval to refund the Rs0.3142 per unit differential to consumers.

According to the CPPA’s application, a total of 14,880 gigawatt-hours (GWh) of electricity was generated in July, costing Rs133.295 billion, with 14,411 GWh delivered to DISCOs. The petition also highlights that the electricity generated from furnace oil cost Rs30.965 per unit, compared to Rs31.6 the previous month. The imported electricity from Iran was priced at Rs25.1575 per unit, down from Rs26.6597, while generation from RLNG-based power plants cost Rs24.887 per unit, compared to Rs26.328. The local coal-based generation cost Rs11.3296 per unit, up from Rs11.029, while the imported coal generation cost Rs16.2 per unit, up from Rs15.535. Additionally, the cost of local natural gas generation was Rs13.7946 per unit, slightly down from Rs13.927 in the previous month. The average generation cost in July 2024 was Rs8.9578 per unit, compared to Rs8.3387 in July 2023 and Rs8.8938 in June 2024.