- Nepra reviews the data and finalizes a uniform reimbursement rate of Re 0.7556 per unit.
- The nightclub adjustments come from a decrease in fuel cost of Rs7.2274 per unit.
- Nepra notes inefficiencies in operating Thar coal-fired power plants at partial capacity.
ISLAMABAD: As the National Electric Power Regulatory Authority (Nepra) has ordered power distribution companies, including K-Electric (KE), to refund excess charges collected earlier, electricity consumers of All Pakistan can expect a reduction in their electricity bills in the current month.
Nepra has approved rebates of Re 0.7556 per unit for state-run nightclub consumers under the monthly Fuel Cost Adjustments (FCA) for November 2024 and Re 0.4919 per unit for KE customers for October 2024 in separate decisions published Tuesday.
According to the Central Power Purchasing Agency-Guarantee (CPPA-G), the adjustment for discoms comes from a decrease in the actual fuel cost of Rs7.2274 per unit in November, compared to the baseline cost of Rs7.8609 per unit. unit.
Nepra reviewed the data and finalized a uniform reimbursement rate of Re 0.7556 per unit, citing underutilization of profitable Thar coal-fired power plants as a contributing factor to higher generation expenses.
Nepra noted inefficiencies in operating Thar’s coal-fired power plants at partial capacity, which inflated unit costs due to the fixed costs of operating the coal mines. “Increased utilization of these plants would allocate fixed costs more efficiently, thereby reducing overall expenditure per unit,” the authority observed.
Delays in the supply of local Thar coal to the Lucky Coal power plant in Karachi have also raised concerns. Nepra ordered the CPPA-G to submit a detailed report on this issue at its next FCA hearing, warning that such delays exacerbate dependence on expensive imported fuels, thereby draining foreign exchange reserves.
K-Electric, which serves Karachi and adjacent areas, initially requested a refund of Re 0.27 per unit for October 2024. However, after reviewing the adjustments, Nepra increased the refund to Re 0.4919 per unit, benefiting to KE consumers with a total impact of Rs843 million.
During its analysis, Nepra corrected KE’s calculations, including adjustments for fuel costs from suppliers like Fauji Power Company Limited (FPCL) and CPPA-G. The authority also corrected discrepancies in KE’s high-speed diesel costs, ensuring accurate billing to consumers.
In the case of Discos, Nepra highlighted the higher power purchase price (EPP) for power generation company Thar Coal Block-I (Rs 21.93 per unit) compared to the PPE of Port Qasim (Rs 15.74 per unit). The authority pointed out that better planning and utilization of Thar’s coal-fired power plants could significantly reduce costs.
The adjustments also included interim claims, such as Rs119 million for power supplied by Tavanir Iran and other cost revisions pending technical verification. Nepra postponed these claims to avoid sudden cost increases for consumers.
