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August 30, 2018

Nepra allows Re0.36/unit increase in electricity tariff


August 30, 2018

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Wednesday allowed an increase of Re0.36/unit in electricity tariff for all the power distribution companies except K-Electric on account of fuel price adjustment for July.

The tariff adjustment/increase will however, not be applicable on lifeline consumers who consume up to 50 units in a month.

Nepra said power generation cost was high in July, while the consumers were charged with low rates.

Nepra took the decision in a public hearing on a petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the power distribution companies (discos).

The CPPA, in its petition, sought Re0.63/unit increase in tariff for July.

The CPPA also sought a previous adjustment of supplemental charges of Rs2.25 billion (Re0.16/unit), but the regulator rejected its plea.

CPPA told the power regulator that actual cost of electricity generation stood at Rs5.6072/unit against the reference fuel price of Rs4.981, registering an increase of Re0.626/unit.

Ex-Water and Power Development Authority (Wapda) discos would be able to collect an additional Rs4.5 billion from electricity consumers in their next monthly bills as a result of the latest tariff adjustment.

Ex-Wapda discos include Faisalabad, Gujranwala, Hyderabad, Islamabad, Lahore, Multan, Peshawar, Quetta, Sukkur and Tribal Areas electric supply companies.

The CPPA purchased 10.74 gigawatt hours (GWh) of electricity generated from high speed diesel- (HSD) based power plants in July at a cost of Rs12.8538/unit. It bought 1,283.76 GWh of electricity produced on residual fuel oil, which accounted for 9.34 percent of total generation at Rs13.5532/unit.

The cost of electricity based on re-gasified liquefied natural gas (RLNG) stood at Rs9.72/unit and its share was 24.5 percent in total electricity generation in July. The electricity generated from RLNG was 3,370.24 GWh.

Currently, two RLNG terminals are operational in the country. The second RLNG terminal was operated at half capacity during the month under review as power sector preferred to run plants on HSD and furnace oil and rather ignored comparatively cheap RLNG.

The total generation from hydropower sources was 3,891.5 GWh, accounting for just 28.30 percent of total generation during July.

The cost of electricity generated by using indigenous gas was Rs5.0246/unit and its total share in electricity generation was 14.87 percent or 2,045 GWh.

The coal-fired power generation was 1,736.77 GWh, accounting for 12.63 percent of total generation at a cost of Rs6.0323/unit.

Nuclear power plants generated 735.65 GWh of electricity at Re0.9523/unit in July, cheapest amongst all fuels.

The electricity imported from Iran was 28.39 89 GWh at Rs11.57/unit.

The 99.86 GWh was generated through bagasse at a cost of Rs6.1832 and 428.92 GWh and 61.52 GWh were produced from wind and solar sources, respectively.

The CCPA further said total electricity generated in July was 13,751 GWh, amounting to Rs73.098 billion. The net electricity delivered to power distribution companies, during the month, was 13,397 GWh, costing Rs75.120 billion. Out of the total delivered electricity, distribution losses stood at 2.5 percent or Re0.1442 per unit.

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