Nepra cuts power tariff by Rs4.35/unit for Feb, March

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Wednesday accorded Rs2.15 per unit and Rs2.2/unit reduction in power charges for the Ex-Wapda distribution companies (Discos) for February and March 2017 respectively under monthly fuel adjustment formula. 

The combine amount of these two months i.e. Rs4.35/unit will be adjusted in power consumers’ electricity bills of May 2017. This will have accumulative impact of around Rs32 billion.  In a public hearing that was presided over by Nepra chairman Tariq Saddozai, the power regulator concluded that the distribution companies had charged Rs7.26 per unit in February and Rs8.098 a unit in March on account of fuel cost to consumers but the actual fuel cost was significantly lower.

Interestingly, the Central Power Purchase Agency (CPPA) had sought in its petition a reduction of Rs2.3979 per unit and Rs2.2037/unit for these months under review.

This adjustment/relief adjustment will be available to the domestic consumers in entire Pakistan, except in Karachi and the lifeline consumers. The reason for not providing relief to the consumers of the K-Electric is that it is a privatised company and distributing its own generated electricity to the consumers in Karachi and is not covered under this determination. Besides the consumers of K-Electric, the relief will also not be available to the lifeline consumers consuming up to 300 units per month, as they are already being provided subsidised electricity.

As per the available data, provided by CPPA, the total generated electricity from all sources, during February, stood at 6382.77 Gigawatt hours (GWh) at the total cost of Rs29.2 billion. The CPPA supplied 6223.19GWh to the distribution companies at a cost of Rs30.259 billion but the Discos faced a net loss of 2.36 percent of total supplied electricity.

In February, almost 28.15 percent power was generated from natural gas at rate of Rs4.2345/unit, this was the highest share in total power generation pie. Around 26.28 percent power generation was produced through furnace oil based plants at rate of 9.4365 per unit. The share of power generation through hydel resources stood at 23.4 percent.

From imported Re-Gasified Liquefied Natural Gas (RLNG) based sources, 8.43 percent electricity was generated at a rate of Rs7.5649/unit. Similarly nuclear based power generation contributed 9.1 percent with a cost of Rs1.1235 per unit. Diesel based electricity contributed about 0.09 percent power generation with a cost Rs15 per unit. From Wind 1.27 percent electricity was produced, 1.26 percent was produced from Bagasse for 4.2636 per unit, solar based generation stood at 0.85 percent. Coal based generation stood at 0.07 percent with cost of 4.5/unit. Beside, 38.72GWh or 0.53 percent electricity was imported from Iran with cost of Rs10.63 per unit.  The CPPA data further says that during March, 7619.86 Gigawatts hours (GWh) was generated at total cost of Rs42.2 billion. The CPPA supplied 7400.2 GWh to the distribution companies at a cost of Rs43.622 billion but the Discos faced a net loss of 2.76 percent of total supplied electricity.

It reported that 32.75 percent power was generated from furnace oil at rate of Rs9.88/uint —the biggest share in country’s power generation. Natural gas generation was 29.12 percent at rate of Rs4.7136/unit. The share of power generation through hydel resources stood at 16.85 percent. From RLNG-based sources, 8.02 percent electricity was generated at a rate of Rs7.5689/unit. Nuclear based power generation contributed 8.09 percent with a cost of Rs1.1230 per unit. Diesel based electricity contributed about 0.5 percent power generation with a cost Rs15.0479 per unit.

From wind 1.14 percent electricity was produced and 1.42 percent was produced from Bagasse for 3.7645/unit, solar based generation stood at 0.83 percent. Coal-based generation stood at 0.11 percent with cost of 4.5/unit. Beside, 38.72Gwh or 0.51 percent electricity was imported from Iran with cost of Rs 10.63 per unit.