ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) is likely to reduce power tariff by Rs 1,035 per unit as part of monthly fuel price adjustment by December 2024, providing some relief to electricity consumers, who bear very high rates.
The Central Purchasing Agency for Power-Guarantee (CPPA-G) has submitted a formal request to Nepra on behalf of the power distribution companies (DISCOs), proposing a tariff reduction of Rs 1,035 per kilowatt-hour (kWh) compared to with the reference fuel cost. 10.6364 rupees
per kWh.
Nepra has scheduled
a public hearing for January 30 to evaluate the proposed tariff review and its impact on the electricity sector. If the petition is approved, electricity consumers will receive a refund on their February bills.
The CPPA-G application stated that a total of 7,516 gigawatt hours (GWh) of electricity was delivered to DISCOs in December 2024 at an average cost of Rs 9.6011 per unit, resulting in a total cost of Rs 72.164 thousand crores. It also included the demand for recovery of the previous adjustment of Rs 2,453 crore by consumers.
During December, hydroelectric energy contributed 1,778 GWh, or 22.8% of total electricity generation, at zero cost. Local coal-fired power plants generated 784 GWh at Rs 17.66 per unit, while plants running on imported coal produced 124 GWh at Rs 19.1529 per unit.
Gas-fired power plants contributed 960 GWh (12.3%) at Rs 13,408 per unit and regasified liquefied natural gas (RLNG)-fired power plants generated 1,615 GWh, accounting for 20.7% of the mix. energy at a cost greater than 22 rupees. 73 per unit.
Nuclear power plants produced 2,065 GWh, or 26.48%, at the lowest cost of Rs 1,698 per unit. Meanwhile, electricity import from Iran accounted for 33 GWh, which came at a significantly higher cost of Rs 28.0589 per unit.
Renewable energy sources also played a role in the energy mix. Wind energy production was 262 GWh (3.35%), solar plants generated 76 GWh (0.97%) and bagasse-based plants contributed 101 GWh at Rs 5.9822 per unit.
If Nepra approves the rate reduction request, it will offer respite to consumers by reducing their bills for February. However, the revision will not apply to lifeguard consumers, electric vehicle charging stations and K-Electric consumers.
Nepra will review the application and consider input from interested parties at the public hearing. Interested parties have been invited to submit written or verbal objections during the planned procedure.
