Monday, December 11, 2023

Nepra reduces 29 Paisa per unit electricity in July

National Electric Power Regulatory Authority (NEPRA) reduces 29 paisa per unit in the monthly fuel cost adjustment (FCA) for former Wapda distribution companies (Discos).

The Central Power Purchasing Agency (CPPA) asked the regulator to refund approximately 12 paisa per unit overcharged to consumers in May 2021 under the FCA mechanism. However, Nepra officials pointed out that compared to the actual fuel charge component of Rs5.6734 per unit, the reference fuel charge component was Rs5.9322 per unit, a difference of 26 paisa.

Chairing a public hearing on a tariff petition by the (CPPA) on behalf of Discos, Nepra President Tauseef H. Farooqi said the regulator was confident about the closure of the LNG terminal and the use of alternative fuel costs for power generation during dry docking of the Engro Floating Storage Re-Gasified Unit (FSRU).

During the hearing, Nepra officials said power companies operated inefficient plants in May and reported gas supplies of only 600mmcfd instead of 800mmcfd for power generation and therefore the higher cost caused by using inefficient plants and System weaknesses should not be transferred to energy consumers.

The public hearing was informed that total power generation from all sources in May was recorded at 13,009-gigawatt-hours (Gwh) at a total cost of Rs74 billion at an average rate of Rs5.7 per unit. Of these, around 12,678 Gwh were delivered to Discos at Rs73.6 billion at an average rate of Rs5.8 per unit.

The head of Nepra expressed displeasure at the repeated failures in the transmission system and questioned whether the senior management of the National Transmission and Dispatch Company (NTDC) was asleep when the government was installing power plants. “Why didn’t NTDC bring the transmission system upgrade to the attention of the government when they were installing new power plants”? he questioned.

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