Power consumers to get relief this month

ISLAMABAD: Power consumers across Pakistan can expect reduced electricity bills in the current month, as the National Electric Power Regulatory Authority (Nepra) has directed power distribution companies, including K-Electric (KE), to refund excess charges collected previously.

In separate decisions issued Tuesday, Nepra approved refunds of Rs0.7556 per unit for consumers of state-run Discos under monthly fuel cost adjustments (FCA) for November 2024 and Rs0.4919 per unit for KE customers for October 2024.

The adjustment for Discos stems from a decrease in the actual fuel cost of Rs7.2274 per unit in November, compared to the reference cost of Rs7.8609 per unit, according to the Central Power Purchasing Agency-Guarantee (CPPA-G).

Nepra reviewed the data and finalised a uniform refund rate of Rs0.7556 per unit, citing underutilisation of cost-efficient Thar coal power plants as a contributing factor to higher generation expenses.

Nepra noted inefficiencies in operating Thar coal power plants at partial capacity, which inflated per-unit costs due to fixed charges tied to coal mine operations. “Increased utilisation of these plants would distribute fixed costs more effectively, reducing the overall expense per unit,” the authority observed.

Delays in the supply of local Thar coal to Karachi’s Lucky Coal Power Plant also raised concerns. Nepra directed the CPPA-G to submit a detailed report on this issue in its next FCA hearing, warning that such delays exacerbate reliance on expensive imported fuels, draining foreign exchange reserves.

K-Electric, which serves Karachi and adjoining areas, initially sought a refund of Rs0.27 per unit for October 2024. However, after reviewing adjustments, Nepra raised the refund to Rs0.4919 per unit, benefiting KE consumers with a total impact of Rs843 million.

During its analysis, Nepra corrected KE’s calculations, including adjustments for fuel costs from suppliers like Fauji Power Company Limited (FPCL) and CPPA-G. The authority also addressed discrepancies in KE’s high-speed diesel costs, ensuring accurate billing for consumers.

In the case of Discos, Nepra highlighted the higher Energy Purchase Price (EPP) for Thar Coal Block-I Power Generation Company (Rs21.93 per unit) compared to Port Qasim’s EPP (Rs15.74 per unit). The authority emphasised that better planning and utilisation of Thar coal plants could significantly reduce costs.

The adjustments also included provisional claims, such as Rs119 million for energy supplied by Tavanir Iran and other cost revisions pending technical verification. Nepra deferred these claims to avoid sudden cost spikes for consumers.