Nepra approves Rs2.97 cut in power tariff

[dil_dil]

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday approved a Rs2.97 per unit cut in power tariff under the head monthly fuel price adjustment for the month of November.

The regulatory authority made this decision during a public hearing which was chaired by Tariq Sadozai, chairman of Nepra on Friday. The regulator took this decision while hearing the plea of Central Power Purchasing Agency (CPPA), which has sought adjustments of variation incurred in the fuel cost for power generation last month.

Earlier, the CPPA, in its petition submitted with the regulator, sought Rs2.92 per unit reduction in power price on account of monthly fuel price adjustment. Also, the regulator by approving Rs2.97 per unit decrease in power prices approved Rs19 billion worth relief for all power consumers except K-Electric.

The CPPA pleaded that total 6.54 billion units of electricity were sold to electricity distribution companies (DISCOs) in the last month. Fuel cost on power generation recorded at Rs4.49 per unit, while reference fuel cost was set at Rs7.41 per unit. Also, power production with furnace and diesel oil was reduced by 1.66 billion units in the said span of one month, if the power generation during October is counted.

Similarly, power generation with diesel and furnace oil in October stood at 3.25 billion units of power while in November it remained at 1.39 billion units. In October, fuel cost for power generation with furnace oil was set at Rs15.64 per unit, while it remained at Rs13.85 per unit.

Reduction in power generation with expansive fuel played a role in reducing the power generation cost. Available documents also said that total 8.13 billion units of electricity were produced, while in November it remained at 6.54 billion.

It was also learnt that fuel cost for power generation with coal registered at Rs4.49 per unit, gas at Rs4.16 per unit, nuclear at Rs1.18 per unit and electricity cost of imported Iranian electricity was recorded at Rs9.69 per unit in November.

Nepra approves Rs2.97 cut in power tariff - Pakistan - DAWN.COM

 

[dil_dil]

Anyone knows what Rs2.97 cut means? How much in % is cut?

 

[Hyde]

It's a good new

Anyone knows what Rs2.97 cut means? How much in % is cut?

Overall the price is still going to be higher than PPP era as N-League raised power tariff for number of times.

The good news is we are going to incur less circular debt and sigh of relief for industries until the oil prices do not rise up again. It just gives us some time to work on energy mix and bring on-going hydro, coal and nuclear projects live in electricity grid. We must not waste this opportunity and continue working on hydro power projects as quickly as possible so that if we are tied up with higher fuel costs again, we have the alternatives available

 

[dil_dil]

ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) on Friday slashed power tariff by Rs2.97 per unit on account of fuel adjustment for the month of November. The tariff cut would reflect in bills of January, but lifeline and K-electric consumers would be exempted from this relief.

Nepra took the decision during a public hearing chaired by Brig (retd) Tariq Saddozai held on Friday. It was informed that consumers using up to 100 units a month would save Rs292 per month.

The government has slashed power tariff by taking some cosmetic measures to improve energy mix which include zero use of High Speed Diesel (HSD), decrease in use of furnace oil, maintaining gas prices and increase in water supplies from dams.

Another measure was curtailment of power production which resulted in lower generation cost but an increase in duration and frequency of load-shedding for consumers. According to officials, 1.2 billion less units were produced during the month of November compared to the corresponding period last year, resulting in a 4-hour extra load-shedding.

During the hearing, it was informed that 10% less power was generated through furnace oil, while no electricity was produced by expensive HSD in November. It was also informed that 7% additional hydel power was generated compared to the same period last year.

It was informed that Nepra had assumed that the gas price would go up to Rs625 per mmbtu for power generation but it remained at Rs573 per mmbtu. “Due to putting gas prices on hold, consumers would be having a relief of Rs3.50 billion,” Nepra was informed.

Officials of the Central Power Purchasing Agency (CPPA) said that the total impact of fuel reduction cost was Rs8.167 billion as Rs4.470 billion in furnace oil, Rs95 million HSD and Rs3.56 billion gas.

“An amount of Rs11 billion was saved due to better energy mix,” the CPPA officials said, adding that the use of HSD in power plants was zero. An amount of Rs10.5 billion was saved due to less use of furnace oil. The cost of furnace oil was Rs66,913 per metric ton in the beginning of November which dropped to Rs56,925 per metric ton.

The regulator was informed that reference fuel cost was Rs7.4167 per unit whereas actual cost was down to Rs4.4495 per unit registering a cut of Rs2.9672 per unit. After hearing, the regulator decided to cut power rate by Rs2.97 per unit.

The Nepra chairman observed that consumers would be enjoying an accumulative reduction of Rs3.50 per unit cut in two months – October and November.

Published in The Express Tribune, December 20th, 2014.