Nepra okays Rs1.70 per unit cut in power tariff

ISLAMABAD: The Nepra approved Rs1.70 per unit cut in power tariff for all distribution companies except K-Electric under monthly fuel adjustment mechanism. It approved the power cut for July in a public hearing held here on Wednesday on a petition filed by Central Power Purchasing Agency Guarantee Ltd (CPPA-G).

The consumers will get benefit of around Rs20 billion and relief will be given in the next month bills. The CPPA-G filed the petition before the power regulator for a tariff cut on behalf of ex-Wapda distribution companies.

However, the relief will not apply to agricultural consumers and residential consumers using less than 300 units. In its petition, the CPPA-G reported that it had charged consumers reference tariff of Rs6.49 per unit in July when actual fuel cost turned out to be Rs4.78. Therefore, there is a legal requirement to return Rs1.70 per unit to consumers.

The reduction in actual generation cost was mainly because of a decline in fuel prices and higher contribution from the cheapest source hydropower. It said about 12,496.63 GWh (Gigawatt hours) were generated in July and 12,267.41 GWh delivered to the distribution companies. Hydropower generation stood at 30.79 percent, coal 2.95pc, furnace oil 25.59pc, RLNG 12pc, gas 17.17 percent.