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NEPRA passes on Rs 3.24 per power unit relief to consumers
ISLAMABAD: NEPRA on Tuesday approved Rs 3.24 per unit reduction in the power tariff as fuel price adjustment for the month of December 2014 to be adjusted in March 2015 as requested by CPPA.
The regulator had been cutting electricity tariffs under monthly fuel price adjustments for the past four months due to the weakening of international oil prices, said a press release.
The Central Power Purchase Agency (CPPA) had sought Rs. 3.24 per unit reduction in power rates from the National Electric Power Regulatory Authority (NEPRA) for all distribution companies except lifeline consumers and K-Electric. Admitting the CPPA's tariff petition, NEPRA held a public hearing on Tuesday for passing on the consumers, a relief of Rs. 3.24 per unit in the upcoming billing month.
However it was observed by the Authority during hearing that the price of electricity purchased by the CPPA from Guddu and Nandipur power plants currently on test running was not being accounted for.
The CPPA was directed to submit a detailed report with all relevant record on the cost of energy delivered to the consumers during the test period for consideration and appropriate decision and adjustment in the subsequent petition.
This would benefit in protecting the consumers from any sudden price hike in cost of electricity.
The CPPA reported to the NEPRA that 6.57 billion units were sold to the distribution companies during december 2014. The reference fuel cost component was assessed as Rs. 9.5328/kWh whereas the actual fuel cost component was arrived as Rs. 6.3241/kWh. Thus reduction of Rs. 3.21 was requested by the CPPA with respect to the NEPRA reference fuel cost component.
The corresponding estimated reference generation mix was assessed as Rs. 62,736.95 million whereas actual generation mix was arrived as Rs. 41,172.56 million which is Rs. 21,564.39 million less. the difference of Rs. 21,564.39 million is attributed to favorable price variance of Rs. 16,796 million and favorable generation mix variance of Rs. 4,768 million. After adjustment of the cases of the generation companies pending before the Honorable High Courts, the corresponding decrease works out as Rs. 3.24/kWh.
Accordingly the Authority decided to pass on the benefit of the Rs.3.24/kWh to the end consumers. The same will be applicable in the month of the March 2015.
It may be added that the NEPRA earlier also passed on major relief of Rs. 2.97 per unit in electricity tariff to domestic power consumers on account of fuel price adjustment for November 2014 in their electricity bills of January 2015.
Copyright APP (Associated Press of Pakistan), 2015
Turkey, Pakistan sign 41 agreements, including counter-terrorism
ISLAMABAD: NEPRA on Tuesday approved Rs 3.24 per unit reduction in the power tariff as fuel price adjustment for the month of December 2014 to be adjusted in March 2015 as requested by CPPA.
The regulator had been cutting electricity tariffs under monthly fuel price adjustments for the past four months due to the weakening of international oil prices, said a press release.
The Central Power Purchase Agency (CPPA) had sought Rs. 3.24 per unit reduction in power rates from the National Electric Power Regulatory Authority (NEPRA) for all distribution companies except lifeline consumers and K-Electric. Admitting the CPPA's tariff petition, NEPRA held a public hearing on Tuesday for passing on the consumers, a relief of Rs. 3.24 per unit in the upcoming billing month.
However it was observed by the Authority during hearing that the price of electricity purchased by the CPPA from Guddu and Nandipur power plants currently on test running was not being accounted for.
The CPPA was directed to submit a detailed report with all relevant record on the cost of energy delivered to the consumers during the test period for consideration and appropriate decision and adjustment in the subsequent petition.
This would benefit in protecting the consumers from any sudden price hike in cost of electricity.
The CPPA reported to the NEPRA that 6.57 billion units were sold to the distribution companies during december 2014. The reference fuel cost component was assessed as Rs. 9.5328/kWh whereas the actual fuel cost component was arrived as Rs. 6.3241/kWh. Thus reduction of Rs. 3.21 was requested by the CPPA with respect to the NEPRA reference fuel cost component.
The corresponding estimated reference generation mix was assessed as Rs. 62,736.95 million whereas actual generation mix was arrived as Rs. 41,172.56 million which is Rs. 21,564.39 million less. the difference of Rs. 21,564.39 million is attributed to favorable price variance of Rs. 16,796 million and favorable generation mix variance of Rs. 4,768 million. After adjustment of the cases of the generation companies pending before the Honorable High Courts, the corresponding decrease works out as Rs. 3.24/kWh.
Accordingly the Authority decided to pass on the benefit of the Rs.3.24/kWh to the end consumers. The same will be applicable in the month of the March 2015.
It may be added that the NEPRA earlier also passed on major relief of Rs. 2.97 per unit in electricity tariff to domestic power consumers on account of fuel price adjustment for November 2014 in their electricity bills of January 2015.
Copyright APP (Associated Press of Pakistan), 2015
Turkey, Pakistan sign 41 agreements, including counter-terrorism
