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October 30, 2020

Nepra reserves decision on Rs1.37/unit raise in power charges

Top Story

October 30, 2020

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its decision on power distribution companies’ (Discos) petition seeking permission to charge Rs1.37 per unit extra from consumers for one month.

The regulator held a public hearing on Thursday on the petition of the Central Power Purchasing Agency (CPPA). It pleaded that Discos may be allowed to charge Rs1.37/unit more from consumers in their next bills, arguing that the cost of generation was high, while it sold the electricity at lower price to consumers.

Nepra Vice Chairman Saifullah Chatta, who presided over the meeting, questioned why the additional furnace oil worth Rs5 billion was used in September for power generation. National Power Control Centre informed that due to 5 percent less gas supply to power plants, furnace was used. The proposed increase will have an impact of Rs17.40 billion.

Nepra Chairman Tauseef H Farooqi said, “We have to take care of the consumers’ interest too.” He said that they will announce the judgment over the proposed increase within seven days. The petition for tariff increase for September 2020 had been filed by CPPA on behalf of ex-Wapda distribution companies (Discos). The CPPA in its petition said that it had charged consumers a reference fuel tariff of Rs2.841 per unit in September, while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs1.3697 per unit additional cost from consumers next month.

Energy generation in September 2020 was recorded at 13,103.80GWH. The total cost of energy generated amounted to Rs53.91 billion. The total electricity sold to Discos was 12,722.97GWH for Rs53.56 billion. Transmission losses during September were 2.91 percent.

The hydropower generation contributed the highest share of 37.18 percent or 4,871.96GWH to the overall power generation. Coal-based power plants contributed 17.42 percent or 2,282.85GWH. The cost of the coal-based electricity was Rs6.0262 per unit.

In September, 71.70GWH expensive electricity from high speed diesel was generated at Rs18.7347 per unit. The electricity imported from Iran contributed 0.36 percent or 46.66GWH at a cost of Rs10.1504 per unit. Mixed energy contributed 0.09 percent or 11.90GWH at the cost of Rs 6.4751 per unit.