NEPRA approves Rs 1.82 per unit increase in power tariff for all power distribution cos

ISLAMABAD: (Urdu Point/Pakistan Point News-Nov 5th, 2019) The National Electric Power Regulatory Authority (NEPRA) has increased up to Rs1.82 per unit increase in power tariff for all the power distribution companies, except K-Electric, lifeline consumers (who use less than 50 units [kwh] per month) and agricultural consumers, on account of fuel price adjustment for the month of September, 2019.

According to the reports, Central Power Purchasing Agency (CPPA) while representing the power distributing companies (DISCOs),has pleaded the NEPRA to raise the electricity tariff by Rs2.97 per unit on account of price adjustment.

The chairman of the regulator had sought explaination from CPPA for out of merit running expensive power plants during September.

The NEPRA accepted the plea of the CPPA but first time in the history deferred the summary for the hearing till Tuesday (today).

Holding public hearing on Oct 30, NEPRA Chairman Tauseef H. Farooqi said: “it would be a burden on our conscience if we pass on to consumers the entire expensive power generated on furnace oil,”.

The regulator directed the CPPA to provide justification along with evidence for generating expensive electricity on furnace oil. The NEPRA also called for plant-wise details of available capacity across the generation system and how the furnace oil-based plants made up to the economic merit order so that a fresh hearing could be conducted.

Around 21.06pc of electricity was generated from RLNG-based plants, and 11.85pc from natural gas, 6pc from furnance oil, 1.10pc from wind and 5.50pc from nuclear plants.

The CPPA, on behalf of ex-WAPDA distribution companies, maintained that it had charged consumers a reference tariff of Rs2. 8410/kWh against the actual fuel cost of Rs5.8136/kWh during the same month.

It said that the total energy from all sources remained at 13,621.35 GWH in September and the total cost was amounted to Rs70.231 billion with an average per unit fuel cost of Rs5.156 per unit.

The net electricity delivered to Discos stood at 13,225 GWh at cost of Rs76.886bn or 5.8136 per kWh. About 2.91pc losses were reported at transmission stage.

The regulator was told that the highest 37.09pc electricity was generated from hydel sources. Besides, 16.39pc was generated from Coal-fired power plants.

It may be mentioned here that fuel prices were increased from Nov 1st that resulted in this new move for the increase in power tarrif.