ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is likely to slash power tariffs by up to 63 paise per unit under the head of monthly fuel price adjustment (FPA) for November 2024.
The Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) on the request of distribution companies (DISCOs) to decrease the electricity price by Rs 0.6335 per kilowatt hour (kWh) under the head Fuel Charges Adjustment (FCA) of November 2024. And, NEPRA has scheduled a public hearing on December 31, 2024, to consider the proposed adjustment and assess its impact on the power sector.
A decrease of Rs 0.6335 per kilowatt hour (kWh) over the reference fuel charges i-e Rs 7.8609/kWh has been requested by CPPA for the month of November 2024, said sources in the industry, adding, that in this regard, a hearing to consider the proposed adjustment is scheduled on December 31, 2024 and all the interested /affected parties have been invited to raise written/oral objections as permissible under the law at the public hearing.
According to the application filed by CPPA, the total electricity delivered to DISCOs in November 2024 was recorded at 7,716 GWh (gigawatt hours) at an average cost of Rs 7.2274 per unit, amounting to a total energy cost of Rs 55,765 million.
Of the total electricity generated, hydropower contributed the largest share with 2,860 GWh (35.61percent) , accounting for 35.61 percent of the generation at zero cost. Coal-fired local and imported power plants generated 1,496 GWh, costing Rs 14.3622 per unit for local coal and Rs 14.9237 per unit for imported coal. The total cost for coal-based generation was Rs 21,748 million.
Power generation from gas-based plants amounted to 858 GWh, representing 10.68 percent of the total generation at Rs 13.4411 per unit. In comparison, power produced from Regasified Liquefied Natural Gas (RLNG) contributed 907 GWh, or 11.29 percent, at Rs 23.2002 per unit.
Other notable sources of energy included nuclear power, which generated 1,655 GWh (20.61 percent) at the lowest cost of Rs 1.7310 per unit, and electricity imported from Iran, which amounted to 37 GWh at a significantly higher cost of Rs 27.1588 per unit.
Renewable energy sources also played a role, with wind power contributing 98 GWh (1.22 percent), solar 69 GWh (0.86 percent), and bagasse 52 GWh at Rs 5.9822 per unit.
If approved, this tariff reduction would provide some relief to consumers by lowering their electricity bills for the month of November 2024. However, the adjustment will not apply to lifeline consumers, electric vehicle charging stations, or customers of K-Electric.
Pursuant to Section 31 (7) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority (NEPRA) may on monthly basis make adjustments in the approved tariff on account of any variation in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.
