Rs1.01/kWh electricity tariff cut proposed for October  

Electricity consumers may see a reduction of over Rs1 per kilowatt-hour (kWh) in their electricity tariff as the National Electric Power Regulatory Authority (Nepra) reviews a proposed adjustment for October 2024. 

The reduction is based on a request from the Central Power Purchasing Agency-Guarantee (CPPA-G), citing changes in fuel costs.  

The CPPA-G has proposed a decrease of Rs1.0159/kWh compared to the previously approved reference price of Rs10.2752/kWh, as the actual fuel cost for October stood at Rs9.2593/kWh. Nepra has scheduled a public hearing on November 26 to consider the adjustment and gather feedback from stakeholders.  

During October, electricity generation relied on a diverse fuel mix, with hydropower leading at 31.06% of the total output. Local coal contributed 14.7% at Rs11.18/kWh, while imported coal accounted for 8.79% at Rs16.9110/kWh. Re-gasified liquefied natural gas (RLNG) played a significant role, providing 19.51% of the generation at Rs22.6426/kWh.  

Nuclear energy, one of the least expensive sources, contributed 14.05% at Rs1.5122/kWh. Local gas-based electricity made up 8.05% at Rs14.2504/kWh, while imported electricity from Iran formed 0.41% of the mix at Rs25.3/kWh. Furnace oil-based generation, though minimal at 0.02%, was the most costly at Rs29.14/kWh.  

The overall generation cost for October was calculated at Rs9.2593/kWh after accounting for transmission losses and sales to independent power producers (IPPs). If approved, the adjustment will lower the tariff for ex-Wapda distribution company consumers.  

Nepra has invited the public and stakeholders to voice their concerns or support for the adjustment during the scheduled hearing.