Islamabad:
Energy consumers are prepared to obtain a relief of more than RS2 per unit due to the reduction of electricity rates due to fuel adjustment charges for the month of January 2025.
The National Regulatory Authority of Electric Power (NEPRA) held a public hearing on Thursday to consider a request presented by the central Power Purchase agency (CPPA) to reduce the energy rate to RS2.0019 per unit.
The CPPA officials informed the energy regulator that the real fuel rate stood at RS11.0081 per unit against the reference price of RS13.0100 per unit, registering a reduction of RS2.0019 per unit due to the variation in energy cost.
Electricity consumers will obtain a total relief of RS15.65 billion in their electricity bills. Consumers are expected to obtain relief in their March electricity bills.
During the audience, it was reported that hydroelectric energy contributed 10.63% to the total of electricity generation, while local coal represented 15.56%, with a cost of RS12.54 per unit. Imported coal, despite a lower participation of 8.53%, was significantly more expensive in RS20.96 per unit.
RLNG’s participation stood at 18.92%, which cost RS22.47 per unit, while the generation based on oven oil, although minimal at 1.34%, had the highest cost in RS30.34 per unit. Nuclear energy remained the cheapest source, covering 26.61% of the generation mixture with only RS1.81 per unit. In addition, the imported electricity of Iran, which constitutes 0.41% of the total supply, had a cost of RS26.34 per unit. The total energy delivered to the discos was 7,816 GWh.
Relief to the agricultural sector
The Energy Division reported during the hearing that a separate application has been submitted to Nepra, looking for a reduction in electricity prices specifically for the agricultural sector. The Energy Division sent this application to Nepera, with the aim of providing negative relief of fuel cost adjustment (FCA) to farmers who use agricultural tubes and national consumers, consuming up to 300 electricity units.
However, the representatives of the Energy Division clarified that the additional subsidy for agricultural tube wells has not been included in the budget. Nepra officials said that providing FCA relief to agricultural consumers would not negatively affect the industrial sector.
It was also revealed that the Sahiwal energy plant operated with 65 percent imported coal. In addition, it is likely that the net relief that amounts to 74 lands per unit will be transferred to consumers in March. According to the winter package, 63 percent of electricity consumption was attributed to industries, while the remaining 37 percent belonged to other consumer categories.
Despite the introduction of a winter package, electricity sales did not see a significant increase. The officials attributed the decrease in the consumption of agricultural and industrial electricity to increase the adoption of solar energy. Many agricultural consumers have changed to solutions with solar energy, while industrial consumers are also exploring alternative energy sources.
Nepring officials expressed concern about the decrease in hydroelectric energy generation due to the lowest rains and snowfall than expected. They have sought more details of the Water and Energy Development Authority (WAPDA) with respect to the availability of expected water during the summer season.
A separate issue with respect to the implementation of the General Sales Tax (GST) in the Net Solar Measurement has reached Nepra. However, the power division declared that he has not yet received any formal decision from the Ombudsman of the Federal Tax (FTO). The authorities said the matter could eventually be sent to the Federal Income Board (FBR) for greater deliberation.
President Nepra asked the energy division to verify this problem. The authorities responded that they would verify from FBR and inform the energy regulator.
