Nepra increases power rates by Rs 2.97 per unit
Islamabad: The power rates in Pakistan go up further by Rs 2.97 per unit on account of quarterly adjustments of power distribution companies.
This includes quarterly power rates worth Rs 1.72 per unit and Rs 1.25 per unit which consumers in Pakistan will have to pay.
However, the national electric power regulatory authority–Nepra–said that the consumer end power rates would only increase by around Rs.0.08/kWh except for A2(a) i.e. Commercial, which will increase by Rs.0.11/kWh with effect from 30.09.2021.
This increase would not be applicable to LifeLine and residential consumers having consumption up to 300 units.
The regulator announced an increase on account of quarterly adjustments of XWDISCOs for the 4th quarter of the financial year 2019-20 and the first and second quarter of the financial year 2020-21.
Read More: Nepra directs CEOs Discos to appear for load shedding
The Authority determined quarterly adjustments of XWDISCOs for the 4th quarter of FY 2019-20 vide decision dated February 10, 2021, with a uniform rate of Rs.0.8276/kWh. Similarly, for the 1st & 2nd quarters of FY 2020-21, the Authority vide decision dated May 6, 2021, determined a uniform rate of Rs.0.8966/kWh.
Ministry of Energy (Power Division) vide request dated 21.05.2021 filed reconsideration request on the above decisions of the Authority, requesting that these adjustments be made applicable from October 2021, instead of the date of notification, once the periodic adjustments already in field cease to be effective, and be notified as such after incorporating surcharges as proposed.
The Authority accepted the request that the effectiveness of the recommended periodic adjustments, be made effective from October 2021 i.e. after the lapse of the existing quarterly adjustments i.e. 30.09.2021, and would remain applicable till 30.09.2022.
Earlier, the regulator is likely to reduce power tariffs by 28.66 paisa per unit for the month of May under the Fuel Charges Adjustment (FCA).
Presiding over the hearing on the Central Power Purchasing Agency Guaranteed (CPPA-G) petition, chairman NEPRA, Tauseef. H.Farooqi has said that the regulator was not taken into confidence regarding shutting down of LNG terminal and the use of alternative expensive fuel for power generation during the dry docking of Engro Floating Storage Re-Gasified Unit (FSRU).
Central Power Purchasing Agency Guaranteed (CPPA-G) had requested National Electric Power Regulatory Authority (Nepra) to allow a refund of the overcharge tariff of 12.5 paise per unit to the consumers of Discos for the month of May 2021 under the FCA mechanism.
However, NEPRA has noted that against the actual fuel charge component of RS 5.6734 per unit, the reference fuel charge component was 5.9322 per unit. The fuel price variation for May was 25.88 paisa. Similarly, deviation from the Economic Merit Order caused an extra burden of Rs 354.29 million or 2.78 paise per unit.
The total decrease recommended was 28.66 paisa per unit and it would have an impact of Rs 3.6bn. This benefit, however, will not be available to lifeline consumers, agricultural consumers, or domestic consumers who use up to 300 units per month.NEPRA has reserved its judgment, which will be announced later.
During the hearing, NEPRA officials said that in May, instead of more efficient power plants, inefficient power plants were operated for power generation. Similarly, against a demand for 800 mmcfd of gas for the power plants, Nepra officials stated that 600 mmcfd of gas was provided.
The high costs caused by the use of inefficient power plants and system weaknesses should not be transferred to power consumers, the regulator noted.
The Chairman of NEPRA also showed his annoyance with the NTDC over the faults in the transmission system and said that the NTDC was sleeping when the government was installing power plants. Why didn’t the NTDC bring the upgrade of the transmission system to the attention of the government when they were installing new power plants? he wondered. Although the regulator was not taken into confidence regarding the closure of the LNG terminal, NEPRA will try to ensure consumers will be less affected by load shedding.
National Electric Power Regulatory Authority (Nepra) on Wednesday approved a cut in power rates in Pakistan by Rs 0.43 per unit on account of fuel adjustment for the month of April 2021.
CPPA-G will reimburse Rs 0.43 per unit that amounts to Rs 4.4 billion, it had charged over and above the actual electricity cost from the power consumers during the month of April.
In a public hearing on the CPPA-G petition for the month of April on account of fuel adjustment, NEPRA has noted that after the calculation CPPA-G needs to return Rs 0.86 per unit, against Rs 0.84 per unit requested by the petitioner, to power consumers for the month of April. However, half of this amount (Rs0.43 per unit) will be adjusted against the previous adjustments for the past months.
At the hearing which was presided over by Chairman NEPRA Tauseef H Farooqi, the regulator noted that instead of RLNG expensive fuel was utilized to run the power plants in violation of merit order.
During the hearing, NEPRA officials said that running the plants without merit order cost the consumers’ multi-million rupee loss. The power companies had burdened the consumers with multimillion rupees loss for not using the RLNG for power generation.
NEPRA approved a reduction of power rates in Pakistan by Rs 0.86 per unit in fuel adjustment. However, the regulator allowed past adjustment of Rs 4.47 billion to CPPA, depriving consumers of half (Rs0.43 per unit) of the relief and allowed it to pass on another half of the amount (Rs 0.43 reduction) to consumers).
The Consumers will get their extra charged Rs 4.4 billion in the next bills. The decision will not apply to consumers with 100 units and KE consumers.
During the hearing the NPRA chairman said that he had written to the government not to carry out load shedding but the government has to do this, adding that the non-operation of better capacity plants was an additional burden on the consumers.
In collaboration with the Ministry, a monthly reporting system has been developed on revolving credit He is preparing a monthly report on revolving credit. A detailed decision and notification of reduction in electricity prices will be issued on Friday.
