ISLAMABAD:
The National Electric Power Regulatory Authority (Nepra) is likely to reduce electricity tariffs by Rs 1,035 per unit as part of the monthly fuel price adjustment for December 2024, which will bring some relief to electricity consumers, who pay very high prices.
The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a formal request to Nepra on behalf of the Electricity Distribution Companies (DISCO), proposing a tariff reduction of Rs 1,035 per kilowatt hour (kWh) over the baseline cost fuel. of Rs 10.6364
per kWh.
Nepra scheduled
a public hearing on January 30 to evaluate the proposed rate revision and its impact on the electricity sector. If the petition is approved, electricity consumers will be refunded on their February bills.
The CPPA-G application stated that a total of 7,516 gigawatt hours (GWh) of electricity was delivered to the DISCOs in December 2024 at an average cost of Rs 9.6011 per unit, which translates to a total cost of 72,164 billion. It also included the demand for recovery of the previous adjustment of Rs 2.453 billion from consumers.
In December, hydroelectric power contributed 1,778 GWh, or 22.8% of total electricity generation, at zero cost. Local coal-fired power plants generated 784 GWh at Rs 17.66 per unit, while plants running on imported coal generated 124 GWh at Rs 19.1529 per unit.
Gas-fired power plants contributed 960 GWh (12.3%) at Rs 13,408 per unit and regasified liquefied natural gas (RLNG) power plants generated 1,615 GWh, accounting for 20.7% of the energy mix at a higher cost of 22 Rs. 73 per unit.
Nuclear power plants produced 2,065 GWh, or 26.48 per cent, at the lowest cost of Rs 1,698 per unit. Meanwhile, electricity imports from Iran accounted for 33 GWh, which represented a significantly higher cost of Rs 28.0589 per unit.
Renewable energy sources also have their part in the energy mix. Wind power generation stood at 262 GWh (3.35%), solar plants generated 76 GWh (0.97%) and bagasse-based plants contributed 101 GWh at Rs5, 9822 per unit.
If Nepra approves the tariff reduction request, it will provide some relief to consumers by reducing their bills for February. However, the revision will not apply to lifeline consumers, electric vehicle charging stations and K-Electric consumers.
Nepra will review the application and take into account stakeholder comments during the public hearing. Interested parties were invited to submit written or verbal objections during the scheduled discussions.
