Power tariff increases by Rs1.56 per unit in Pakistan

National Electric Power Regulatory Authority (Nepra) issued notice to power distribution companies for increasing in tariff of Rs 1.56 per unit on account of fuel cost adjustment for October 2019.

Power tariff increases by Rs1.56 per unit in PakistanThe regulator at the public hearing of a petition filed by the Central Power Purchasing Agency (CPPA) on behalf of distribution companies pointed out that the tariff hike was allowed because consumers got electricity at a lower price in October.

However, the CPPA had sought a price increase of Rs 1.7579 per unit. The distribution companies would collect extra Rs 14.5 billion from power consumers in December bills.

CPPA pleaded that it had charged consumers a reference tariff of Rs 3.7579 per unit in October while the actual fuel cost turned out to be more than the amount charged in its petition. Hence, it should be allowed to increase tariff by Rs 1.7397 per unit.

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However, Nepra approved increase of Rs1.56 per unit. The tariff adjustment will however not be applicable to the lifeline consumers who consume up to 50 units a month and K-Electric consumers.

According to the petition, total energy generation stood at 9,572 gigawatt-hours (GWh) in October costing Rs48.01 billion or Rs5.0159 per unit. Of the total, the net electricity delivered to the distribution companies came in at 9,296.6 GWh with transmission losses of 258.94 GWh.

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The share of hydroelectric power in the total energy mix was 2,438.8 GWh or 25.48% in October. Energy generated with the help of imported re-gasified liquefied natural gas (RLNG) was calculated at 2,432.7 GWh or 25.41% at a cost of Rs 9.884 per unit.

Power generation from coal came in at 2,356.9 GWh or 24.62%) at a cost of Rs 5.8508 per unit. Domestic natural gas-based power generation stood at 1,164.94 GWh (or 12.17%) costing Rs 7.227 per unit.

Around 883.23 GWh of electricity was generated from nuclear sources with per-unit cost of Rs1.0134. Its share was calculated at around 9.23% of the total generation.

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Furnace oil based electricity had a share of around 19.26 GWh or 0.20% costing Rs 13.4435 per unit. In October, no electricity was generated from high-speed diesel.

From Iran, 43.05 GWh or 0.45% of electricity was imported at a cost of Rs 11.571 per unit. Among renewable energy sources, wind and solar energy contributed 153.05 GWh and 61.58 GWh respectively.

Bagasse based electricity contributed 5.43 GWh or 0.06% of electricity to the energy mix at a cost of Rs 3.305 per unit. From mixed sources, 13.07 GWh or 0.14% of electricity was generated, costing Rs6.82 per unit.

Saad Farooq
Author: Saad Farooq

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