- Nepra reviews the data and finalizes a uniform reimbursement rate of Re 0.7556 per unit.
- Discos adjustments are due to the decrease in fuel cost of Rs 7.2274 per unit.
- Nepra points to inefficiencies in running Thar coal-fired power plants at partial capacity.
ISLAMABAD: As the National Electric Power Regulatory Authority (Nepra) has ordered power distribution companies, including K-Electric (KE), to refund excess charges collected earlier, power consumers across Pakistan can expect a reduction on your electricity bills in the current month.
Nepra approved rebates of Re 0.7556 per unit for State Discos consumers based on monthly fuel cost adjustments (FCA) for November 2024 and Re 0.4919 per unit for KE customers for October 2024 in separate decisions issued on Tuesday.
According to the Central Purchasing Agency for Power-Guarantee (CPPA-G), the adjustment for Discos is due to a decrease in the actual fuel cost of Rs 7.2274 per unit in November, compared to the reference cost of 7 .8609 rupees per unit.
Nepra reviewed the data and finalized a flat reimbursement rate of Re 0.7556 per unit, citing underutilization of profitable Thar coal-fired power plants as a contributing factor to higher generation expenses.
Nepra pointed out inefficiencies in operating Thar coal-fired power plants at partial capacity, which inflated unit costs due to fixed charges linked to coal mine operations. “Greater utilization of these plants would distribute fixed costs more effectively, reducing total expenditure per unit,” the authority noted.
Delays in supply of local Thar coal to Karachi’s Lucky Coal Power Plant also raised concerns. Nepra ordered the CPPA-G to submit a detailed report on this issue at its next hearing before the FCA, warning that such delays exacerbate dependence on expensive imported fuels, depleting foreign exchange reserves.
K-Electric, which serves Karachi and adjacent areas, initially requested a rebate of 0.27 reais per unit for October 2024. However, after reviewing the adjustments, Nepra increased the rebate to 0.4919 reais per unit, benefiting KE consumers with a total impact of Rs 843 million.
During its analysis, Nepra corrected KE’s calculations, including adjustments for fuel costs from suppliers such as Fauji Power Company Limited (FPCL) and CPPA-G. The authority also addressed cost discrepancies in KE’s high-speed diesel, ensuring accurate billing for consumers.
In the case of Discos, Nepra highlighted the higher power purchase price (EPP) for Thar Coal Block-I Power Generation Company (Rs 21.93 per unit) compared to Port Qasim EPP (Rs 15.74 per unit ). The authority emphasized that better planning and utilization of Thar coal plants could significantly reduce costs.
The adjustments also included provisional claims such as Rs 119 million for power supplied by Tavanir Iran and other cost revisions pending technical verification. Nepra deferred these claims to avoid sudden increases in costs for consumers.
