Nepra likely to slash tariffs by up to 63 paisa per unit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is likely to cut power tariffs by up to Rs0.63 per unit under the monthly fuel price adjustment (FPA) for November 2024, offering potential relief to electricity consumers.

The Central Power Purchasing Agency (CPPA) submitted a formal request to the Nepra on behalf of distribution companies (Discos), proposing a decrease of Rs0.6335 per kilowatt-hour (kWh) from the reference fuel charges of Rs7.8609 per kWh. The Nepra has scheduled a public hearing on December 31, 2024, to assess the proposed adjustment and its impact on the power sector. If this adjustment was approved, it will be refunded in January 2025 bills. The CPPA’s application states that a total of 7,716 gigawatt-hours (GWh) of electricity was delivered to Discos in November 2024 at an average cost of Rs7.2274 per unit, amounting to a total energy cost of Rs55.76 billion. Hydropower led the generation mix, contributing 2,860 GWh or 35.61 per cent of the total electricity generated, at zero cost. Coal-fired power plants, both local and imported, generated 1,496 GWh, with local coal costing Rs14.3622 per unit and imported coal at Rs14.9237 per unit.