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NEPRA approved Rs 4.11 per unit reduction in power tariff

02 March, 2016

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ISLAMABAD: National Electric Power Regulatory Authority (NEPRA) on Tuesday approved Rs 4.11 per unit reduction in power tariff for January under the monthly fuel price adjustment formula.

Central Purchasing Power Agency (CPPA) had requested NEPRA to reduce the electricity price owing to the reduction of fuel prices in the international market. The consumers of all distribution companies except K-Electric and lifeline consumers using less than 50-300 units would get relief in the billing of next month. The decision was taken after a public hearing on a petition filed by Central Power Purchase Agency on behalf of the distribution companies. NEPRA Chairman Brig (r) Tariq Saddozi presided over the hearing.

The diesel-based power generation cost stood at Rs 12.42 per unit, furnace oil-based at Rs 6.28, gas-based at Rs 6.01, nuclear at Rs 1.12 per unit and imported energy from Iran at Rs 10.60 per unit, resulting in the saving of Rs 32 billion.

The fuel reference price for January was fixed at Rs 9.86 per unit, while average fuel cost was calculated at Rs 6.48 per unit. Some 50 percent electricity was generated from gas. The officials of CPPA and NTDC were admonished for not providing information about running power plants on less expensive furnace oil and efficient plants instead of diesel. The CPPA official said that all power plants were operated as per merit order and all information would be provided to the NEPRA.

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