ISLAMABAD: On Thursday, the National Electric Power Regulatory Authority (NEPRA) approved a Rs 2.8 per unit adjustment for the month of September in the power tariff on the account of fuel adjustment, as the oil prices in the international market remained depressed for another month.
The regulators chairman, Tariq Sadozai, chaired the hearing. The approval was given at the public hearing on the monthly fuel price adjustment mechanism attended by the official of the Central power purchasing Agency and the tariff section of the Nepra.
“Consumers would enjoy a combined relief of Rs25 billion in their monthly bills following the tariff reduction. However, domestic consumers who use up to 300 units a month will not be able to enjoy the relief and will continue to pay a higher price for electricity,” according to the Nepra.
“The tariff cut was intended to reimburse bills collected by the CPPA after charging consumers a reference price. They said the regulator had been intentionally delaying the reimbursement on the finance ministry’s insistence,” some official have suggested.
They said that, “Nepra was originally supposed to reimburse the Rs25 billion to consumers in bills for November.” He officials added that, “Consumers will now benefit from the relief in January next year. This was done to allow the ministry to make money on the basis of interest received in return for keeping CPPA money in banks during this time.”
One official said that, “The regulator should have revised the reference fuel price following the dip in global oil prices but high-ups in Nepra opposed the plan in a bid to enable CPPA to keep money collected from the consumers in banks.”
“The fuel cost of electricity delivered to distribution companies was calculated at Rs3.65 per unit in June against the reference price of Rs6.43 per unit, which suggested that the consumers should be returned Rs2.78 per unit,” according to the petition filed by the CPPA with Nepra.
It added that, “The total volume of energy generated from all fuel sources stood at 9,619.47 gigawatt hours in the month costing Rs35.62 billion. However, the CPPA supplied 9316.07 gigawatt hours electricity to the distribution companies at cost of Rs34 billion.”
According to the petition of CPPA earlier this month, “the fuel cost of electricity delivered to distribution companies (DISCOs) was Rs4.0525 per unit in August 2015 against a reference price of Rs6.4562 per unit, suggesting reimbursement of Rs2.4037 per unit. Total energy generated from all sources was 10,519.2 GWh in August at a cost of Rs43.783 billion (Rs4.1622 per unit). However, CPPA delivered 10,221 GWh to Discos at Rs41.420 billion (Rs4.0525 per unit). The financial impact of transmission losses in August 2015 has been recorded at Rs293.37 million or Rs0.1149 per unit.”