Power tariff for June may see reduction of Rs2.13 per unit

Islamabad: A petition for electricity tariff reduction has been filed with National Electric Power Regulatory Authority (NEPRA) by the Central Power Purchasing Agency-Guarantee (CPPA-G) on Wednesday. The hearing will be held on the 25th of July in this regard.

A tariff reduction of Rs2.13 has been sought by the CPPA-G for the month of June on account of lower fuel costs for all distribution companies aside K-Electric. This tariff cut won’t be applicable for those using up to 300 units of electricity per month.

Nepra was informed by CPPA-G that a higher reference tariff of Rs6.83 per unit had been charged from consumers, whereas the actual fuel cost was Rs4.70 per unit. So by law, the price differential of Rs2.13 will be refunded to the consumers.

During June, power generation was assessed at 11,458 GWh (Gigawatt hours) and the CPPA-G delivered 11,210 GWh of electricity which was attributed to system losses of 2.04pc.

Electricity generated from hydel sources remained the cheapest and constituted 30.5pc of the overall energy mix. Power generation from coal rose to 5.7pc due to the addition of Sahiwal Coal Power project in the national grid. Solar and wind power contribution constituted 2.2pc with no fuel costs.

Power generated from high-speed diesel (HSD) contributed 1.36pc to the power generation costing Rs14.36 per unit. Generation from Liquefied Natural Gas (LNG) stood at 12.25pc at a rate of Rs7.45 per unit. Production of electricity from natural gas accounted for 18.43pc of the total generation and cost was recorded at Rs4.26 per unit.

Furnace oil based power generation constituted 22.34pc of the total generation and cost Rs9.5 per unit. Total energy cost by CPPA-G was calculated at Rs50.85b at Rs 4.44 per unit and the power delivered to distribution companies cost Rs52.63b or Rs4.7 per unit.

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