JEE News reported that the National Electric Power Regulatory Authority (Nepra) on Thursday approved a reduction in electricity rates by Rs 4.87 per unit for K-Electric consumers.
The tariff reduction in fuel adjustment charges will provide relief of Rs 7 billion to K Electric customers. The reduction will not apply to Lifeline customers of K Electric.
Nepra has not issued any detailed announcement yet.
However, Chairman Nepra has said that K Electric’s production and CPPA numbers do not match.
Chairman Nepra said that the government is incurring a loss of Rs 15 per unit which is ultimately paid by the consumer.
However, the Central Power Purchasing Agency (CPPA) has recommended an increase of Rs 0.22 per unit in electricity rates in fuel adjustment charges for August from Nepra.
According to the CPPA application, hydraulic power plants generated 38.10 percent of electricity in August, compared to 15.39 percent from coal. Furnace oil generated 7.27% of electricity, 12.49% from RLNG, 13.34% from nuclear power plants, and 9.36% from local gas.
The per unit cost of coal generated electricity was Rs 20.54, furnace oil was Rs 35.61, local gas was Rs 10.49 and RLNG was Rs 24.72 per unit.
The CPPO’s application stated that various power sources generated a total of 13.638 billion units of electricity in August. The average production cost for August was Rs 10.11 per unit, and the reference fuel cost was Rs 9.89.
CPPA advised Nepra to increase the fuel rates by Rs 0.22 in view of the fluctuation in fuel prices in the international market.
