Nepra cuts electricity tariff by Rs2.06/unit

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday reduced electricity tariff by Rs2.06 per unit for all distribution companies under the monthly fuel adjustment plan.

Nepra also expressed dismay over the government’s dilly-dallying attitude towards not taking tariff for its 747 megawatts Guddu power plant despite operational for the last one year and it has been running on the interim tariff. Nepra also sought written reply from the ministry of water and power in this regard.

Chairman Nepra ordered the legal department to take action of fining the CPPA for submitting monthly fuel adjustment petitions consistently with delay and not following the Nepra orders. This decision was made on the request of the Central Power Purchase Agency (CPPA) at a public hearing presided over by Nepra Chairman Tariq Sadozai. Interestingly, the CPPA had asked for Rs1.97 a unit reduction. The authority will soon notify this reduction.

This reduction aimed at passing on the benefit of the ‘cheaper cost of fuel for power generation’ to the domestic power consumers, by making the fuel price adjustment in their electricity bills of January 2016. The adjustment of the units’ which the domestic consumers have consumed in November 2015 will be made in bills of January 2016 at the rate of Rs2.06 per unit.

Reference fuel cost for the month of November was fixed at Rs7.30 per unit while the actual cost remained Rs5.32 per unit. Electricity worth Rs6.53 billion was sold to the distribution companies.

This adjustment/relief in monetary terms will be around Rs20 billion and shall be available to the domestic consumers in entire Pakistan, except in Karachi where the K-Electric is distributing its own generated electricity to the city and is not covered under this package and also the domestic consumers using less than 300 units a month as they are already in categories enjoying subsidies.

An intervener when asked about the Nandipur Power Plant’s number in merit order of power generation and whether it is operating the merit order, there was no answer with the authority and its officials.

However, chairman Nepra assured the intervener that soon they would find the information from the National Transmission & Despatch Company (NTDC) Limited.

It was informed that despite the furnace oil prices reduced to record low, but in November the desirable electricity was not generated with it. The reference of furnace oil for electricity generation was 34 percent in November, but 27.61 percent electricity was generated as furnace oil as fuel.