Nepra allows Rs1.1138 per unit hike in power tariff under fuel price adjustment

ISLAMABAD- Ex-Wapda Discos are all set to transfer the burden of Rs 14 billion to power consumers as NEPRA has allowed an increase of Rs 1.1138 per unit in electricity tariff under fuel price adjustment for the month of September 2020.

In its petition with NEPRA, the Central Power Purchasing Agency (CPPA) had proposed an increase of Rs1.3697 per unit in power tariff, under fuel price adjustment, for the month of September 2020 for ex-Wapda Discos. However, NEPRA after hearing had reserved the judgment and after going through the data provided by CPPA it has allowed Rs 1.1137 per unit increase in power price instead of the demanded Rs1.3697.

In its decision, the regulator said that the increase of Rs 1.1138 per unit shall be applicable to all consumers’ categories except lifeline consumers of all the XWDiscos.The adjustment shall be shown separately in consumers bills on the basis of unit billed to the consumers in the month of September 2020 by the XWDiscos.

The distribution companies shall reflect the fuel charges adjustment in respect of September 2020 in the billing month of December 2020. The impact of the increase on the power consumers will be around Rs 14 billion.

The petition for tariff increase for September 2020 was filed by CPPA on behalf of ex-Wapda distribution companies (Discos). The CPPA, in its petition said it had charged consumers a reference fuel tariff of Rs2.8410 per unit in September while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs1.3697 per unit additional cost from consumers next month. 

According to the data provided to NEPRA, the energy generation in September 2020 was recorded at 13103.80 GWh. The total cost of energy generated amounted to Rs53.91 billion. The total electricity sold to Discos was 12722.97 GWh for Rs 53.560 billion. The total transmission losses during September were to 2.91 percent.

The hydropower generation contributed the highest share of 37.18 per cent or 4871.96 GWh to the overall power generation during September. Coal based power plants contributed 17.42 percent or 2282.85 GWh. The cost of the coal based electricity was Rs6.0262 per unit. In September, 71.70 Gwh expensive electricity from high speed diesel was generated at Rs18.7347 per unit. The electricity imported from Iran contributed 0.36 percent or 46.66 Gwh at a cost of Rs10.1504 per unit. Mixed energy contributed 0.09 per cent or 11.90 Gwh at the cost of Rs 6.4751 per unit.