Power tariff to be reduced effective March ’14

MUSHTAQ GHUMMAN

ISLAMABAD: Electricity prices are expected to be reduced by more than one rupee per unit effective March 2014 due to rupee appreciation against dollar.

National Electric Power Regulatory Authority (Nepra) has fixed April 22, 2014 to hear a petition of Central Power Purchasing Agency (CPPA) on fixation of monthly fuel price adjustment.

According to the Nepra Act, the Authority has to review and revise the approved tariff on account of any variations in the fuel charges on a monthly basis. Based on the information provided by the CPPA, the actual fuel charges for the ex-Wapda Discos for March 2014 are as follows: hydel - Rs 1.10 per unit, coal - Rs 4.4998 per unit, HSD - Rs 22.8424 per unit, RFO - Rs 16.2286 per unit, gas - Rs 4.6516 per unit, nuclear - Rs 1.3213 per unit and import from Iran - Rs 9.79 per unit. In March, energy generated from different sources stood at 6,531.22 GWh at rate of Rs 8.4904 per unit total cost of which has been calculated at Rs 55.452 billion; however, net delivered electricity to Discos was 6,434.75 GWh as 89.16 GWh was lost in transmission cost of which was about Rs 2 billion.

The rate of net delivered electricity in March has been calculated at Rs 8.9029 per unit. The CPPA, in its petition, has requested Nepra to slash electricity price by Rs 1.0184 per unit over the reference fuel charges, ie, Rs 9.9213/kWh.