Nepra cuts Rs3.94 per unit electricity price

Zeeshan Javaid

Islamabad—The National Electric Power Regulatory Authority (Nepra) on Thursday approved a massive cut in electricity unit price up to Rs3.94 under the monthly fuel adjustment plan.
In the wake of public antagonism against continuous power outages and recent move of finance managers of an increase in the prices of petroleum products, Nepra announced an immense relief to power consumers in electricity unit price.
The decrease in electricity price has been made for April 2016 and relief would be provided to the consumers of eight power distribution companies in electricity
billing of upcoming month August 2016, however, the new tariff will not be applicable on lifeline, agricultural and K-electric consumers.
The information provided by the Central Power Purchase Agency (CPPA) suggests that the actual pool fuel charge for the month of November was Rs7.6273 per electricity unit against the reference fuel cost component and asked a decrease in the price of electricity unit up to Rs3.1456.
Details submitted by CPPA reveal that 7.631 billion electricity units were purchased by power distribution companies (DISCOs) from small and captive power plants during April 2016 against the actual fuel cost of accumulated energy Rs32.144 billions.
According to document available with this scribe, CPPA submitted tariff determination to the authority detailing that 12.96 million units with cost of Rs153.56 million with per unit cost of Rs11.8524 through High Speed Diesel (HSD), 2.251 billion through Furnace Oil (RFO) with cost of Rs12.112 billion at Rs5.38 per unit, 2.524 billion units costing Rs14.487 billion at Rs5.7395 per unit through Natural Gas.
Similarly, 421.39 million units were generated with a cost of Rs489.25 million at per unit cost of Rs1.1611 through nuclear resources and 73.90 million through wind energy during April 2016, adding that 39.24 million Units were imported from Iran with a cost of Rs415.90 million at per unit cost of Rs10.60.
The CPPA reported NTDC transmission losses of 180.09 million electricity units (2.30%) during April 2016, which were slightly lower than the Authority’s assessed transmission losses of three per cent.
The CPPA told Nepra that because of the decrease in price of furnace oil in international as well as local markets; the power generation cost had also been decreased, causing decrease in electricity price in terms of fuel adjustment charges.
Hydel power generation also remained low during the certain period, it said. After thorough consideration Nepra issued notification of massive decrease of Rs3.94 per electricity unit under monthly fuel adjustment plan for April 2016 that would be applicable to all the consumer categories except lifeline and agriculture consumers of all the DISCOs and would be shown separately in the consumers’ bill on the basis of units billed to the consumers in the month of August 2016.

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