The country’s top power regulator, National Electric Power Regulatory Authority (Nepra) Chairman Brig (retd) Tariq Saddozai, has approved a Rs 4.11 per unit cut in electricity tariff for consumers of power distribution companies (Discos) on account of fuel adjustment for the month of January 2016.
The applicable criteria, is modified in light of the agreements with lenders like the International Monetary Fund (IMF) and the World Bank. These are consumers that are qualified for refund after consumption above 300 units a month. Therefore, this implies that lower income groups are not eligible for a refund. The new tariff is also not applicable to K-Electric and agriculture consumers.
The authority announced plans to take legal action against the Central Power Purchasing Agency (CPPA) and the National Transmission and Dispatch Company (NTDC) for purchasing expensive electricity and not sharing real-time data with the regulator.
In January 2016, the total energy – generated from all sources at a cost of Rs37.5 billion – was 6,770 GWh. However, the CPPA delivered 6,503 GWh to Discos at a cost of Rs42.151 billion.
The CPPA, in its tariff petition, had recommended a refund of only Rs3.38 per unit in January. Hearing CPPA’s tariff petition of Rs 3.38 per unit refund in January, filed under monthly fuel price adjustment mechanism, Nepra ruled that the consumers of Discos will be refunded Rs20 billion for January in February bills. Furthermore, fuel cost of electricity delivered to Discos was Rs6.4817 per unit in January 2016 against a reference price of Rs9.8670 per unit.
The CPPA failed to submit total amount of transmission losses, which was recorded at 3.79 per cent or 256.43 GWh. The transmission losses stood at Rs0.2560 per unit.
Furthermore, Hydel generation was recorded at 842.95 GWh which was 12.45 per cent of total generation, in January. Generation through high speed diesel (HSD) was 367.30 GWh (5.43 per cent) while its cost was Rs12.42 per unit.
Nepra rejected the CPPA’s Rs4.42 billion claim as it purchased expensive electricity from Nandipur Power Project. According to Nepra officials, the CPPA procured expensive electricity on open cycle due to which fuel cost increased. Nepra said the CPPA would not be allowed to pass on Rs4.42 billion to consumers.