ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) is likely to slash power tariffs by up to 70 paise per unit under the head of monthly fuel price adjustment (FPA) for September 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 0.7057 per kilowatt hour (kWh) under the head Fuel Charges Adjustment (FCA) of September 2024. And, NEPRA has scheduled a public hearing on October 30, 2024, to consider the proposed adjustment and assess its impact on the power sector.
According to the application filed by CPPA, the total electricity generated in September 2024 was recorded at 12,487 GWh (gigawatt hours) at an average cost of Rs 8.3380 per unit, amounting to a total energy cost of Rs 104,114 million.
Of the total electricity generated, hydropower contributed the largest share with 4,838 GWh, accounting for 38.75 percent of the generation at zero cost. Coal-fired local and imported power plants generated 2,410 GWh, costing Rs 12.2882 per unit for local coal and Rs 16.5990 per unit for imported coal. The total cost for coal-based generation was Rs 34,569 million.
Power generation from gas-based plants amounted to 988 GWh, representing 7.91 percent of the total generation at Rs 13.6768 per unit. In comparison, power produced from Regasified Liquefied Natural Gas (RLNG) contributed 2,039 GWh, or 16.33 percent, at Rs 24.9570 per unit.
Other notable sources of energy included nuclear power, which generated 1,596 GWh (12.78 percent) at the lowest cost of Rs 1.5417 per unit, and electricity imported from Iran, which amounted to 40 GWh at a significantly higher cost of Rs 25.9519 per unit.
Renewable energy sources also played a role, with wind power contributing 395 GWh (3.17 percent), solar 105 GWh (0.84 percent), and bagasse 36 GWh at Rs 12.4788 per unit.
The CPPA’s data indicated that a total of 12,118 GWh of electricity was delivered to DISCOs in September 2024, at a rate of Rs 9.0949 per unit, with a total cost of Rs 110,216 million.
If approved, this tariff reduction would provide some relief to consumers by lowering their electricity bills for the month of September 2024. However, the adjustment will not apply to lifeline consumers, electric vehicle charging stations, or customers of K-Electric.
