Relief In Electricity Rates
Relief In Electricity Rates: National Electric Power Regulatory Authority (NEPRA) has rejected the request for 44 paisa per unit increase. They have ordered ex-Wapda distribution companies (Discos) to refund Rs.1.86 per unit to consumers for overcharging them about Rs.15 billion in March 2018.
The Central Power Purchase Agency (CPPA) on behalf of distribution companies of ex-Wapda earlier requested that the consumers should be passed on an increase of 44 paisa per unit on the basis of recently notified base tariff 2015-16 instead of previous 2014-15 tariff on the basis of which the regulator used to make monthly fuel cost adjustments (FCA).
The CPPA reported to the regulator that it had charged a lower reference tariff of Rs.6.643 per unit to consumers in March but actual fuel cost turned out to be Rs.7.1 per unit. Therefore, the power companies should be allowed to recover about 44 paisa per unit from consumers to generate Rs.6.14 billion to Discos.
However this request was rejected by NEPRA asking power distribution companies to adjust electricity bills.
The relief in electricity rates will not be applicable to agricultural consumers and residential consumers with less than 300 units of monthly consumption as these categories were already being provided subsidized electricity and therefore do not qualify for monthly fuel price cut. The KE consumers will also not benefit from the relief.
About 8,740 Gwh (gigawatt hours) were generated in March and 8,469 Gwh could be delivered to distribution companies due to about 3% losses in the transmission system.
The power generation from furnace oil-based power plants increased to 16% in March compared to 8.33% in February. Its generation cost stood at Rs.1.83 compared to Rs.10.16 per unit in the former month.
The natural gas-based generation remained within a close band in March and contributed 21% electricity compared to 24% in February. Its per unit cost worked out at Rs.4.75.
On the other hand, the power production from regasified liquefied natural gas (RLNG) increased to 24.3% in March compared to 19.2 in February. Its generation cost jumped to Rs.8.85 from Rs.6.33 per unit in December 2017.
The share of coal-based generation reached 14.46% and its cost increased to Rs.6.9 per unit in March. The price of electricity import from Iran stood at Rs11.05 per unit and contributed about 0.5% to the energy pool.
The CPPA said total energy was generated at a total cost of Rs.54bn or Rs.6.17 per unit while 3% lower supply was delivered to distribution companies at a cost of Rs.60bn or Rs.7.1 per unit.
Hydro-power generation contributed only 10% of total electricity generated in March due to adverse hydrological conditions and low irrigation indents by the provinces with zero fuel cost. Also, the wind and solar plants together contributed about 2.5% energy at no fuel cost.
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