Yesterday, the National Electric Power Regulatory Authority (NEPRA) announced that it has approved reduction in electricity tariff by PKR 3.60 per unit nationwide, except Karachi where rates have been increased by 60 paisa per unit for K-Electric (KE). The decision has been made on account of fuel price adjustment for the month of November in 2016, however, the relief will be adjusted in January for consumers
Following the reduction in tariffs, the authority has decided that PKR 3.6 per unit will be returned to domestic power consumers of DISCOs for November. Altogether, this decision has helped domestic power consumers to get a relief of PKR 24 billion. Nevertheless, K-Electric that caters to consumers in Karachi including agricultural and residential users, will not receive any reduction in tariff as the government says KE is already subsidized.
Actual cost of power generation was calculated at PKR 3.7 per unit compared to the reference price of PKR 7.3 per unit.
During the hearing, the Central Power Purchasing Agency (CPPA) officials pointed that out of PKR 24 billion, power consumers will get a relief of PKR 8.9 billion following a drop in global oil prices and receive refund of PKR 15 billion because of improvement in the energy mix.
CPPA said that it did not purchase any electricity from high-speed diesel and coal in November, therefore, it did not mention their prices in the petition. As per the petition, a total of 6,935 GigaWatt-hours (GWh) were generated in November at a price of PKR 24.8275 billion. Net electricity supplied to the distribution companies was 6,839.93 GWh at a cost of Rs25.33 billion.