Business

NEPRA approves Rs3.11 per unit reduction in power tariff

The National Electric Power Regulatory Authority (Nepra) on Thursday approved Rs3.11 per unit reduction in power tariff on account of fuel adjustment for the month of November 2017.
In a public hearing on a petition filed by Central Power Purchasing Agency (CPPA-G), Nepra decided that a relief of Rs3.11 per unit shall be passed on to consumers for the month of November.
The CPPA had filed a petition requesting a decrease of Rs1.47 per unit on account of fuel adjustment. The consumers will get benefit of around Rs25 billion and the relief will be given in next month’s bills. The public hearing was chaired by Chairman Nepra Tariq Sadozai.
This adjustment will be available to domestic consumers across Pakistan, except for Karachi where K-Electric decides all matters related to power tariff adjustments. The adjustment will also not be available to domestic consumers that use up to 300 units per month.
The CPPA-G filed a petition before the power regulator for a tariff cut on behalf of ex-Wapda distribution companies. In its petition, the CPPA-G reported that it had charged consumers a reference tariff of Rs7.3040 per unit in November against the actual fuel cost of Rs5.8313 per unit requesting a reduction of Rs1.4727 per unit.
The reduction in actual generation cost was mainly because of a decline in fuel prices, zero use of high speed diesel in power plants and higher contribution from the cheapest source hydropower.
During the past, there was more use of high speed diesel in power plants and consumers were burdened with multibillion rupees. However, the major decline in power tariff was due to zero use of high speed diesel in November 2017.
According to the CPPA-G, about 7170.43 GWh (Gigawatt hours) were generated in November and 6994.47 GWh delivered to distribution companies due to about 2.27 per cent transmission and distribution losses.