ISLAMABAD: Days after the government imposed a 30 paisa per unit surcharge, the National Electric Power Regulatory Authority (Nepra) allowed on Monday a 53 paisa per unit increase in electricity tariff for all distribution companies, except K-Electric.

The consumers will now have to pay an additional 83 paisa per unit in the billing month of December. The 30 paisa equalisation surcharge came into force on Oct 3 through a notification which was not made public and consumers will find it in their bills next month.

Also read: No plan to increase power tariff, says finance minister

Nepra allowed the 53 paisa increase under automatic fuel adjustment for power generated in September. The increase was allowed at a public hearing presided over by Nepra’s acting Chairman Habibullah Khilji on a petition filed by Central Power Purchase Agency (CPPA).

The equalisation surcharge is a permanent feature built into the base consumer tariff while the increase allowed by Nepra is based on monthly fuel adjustment that changes depending on energy mix and international oil prices.

The hearing was informed that about 39 per cent power generation came from hydel resources with no fuel cost. This was followed by 31.5pc share from furnace oil-based plants at a fuel cost of Rs15.65 per unit, while 20.56pc generation was contributed by gas-based plants at fuel cost of Rs4.3 per unit and about 4.7pc from nuclear energy at Rs1.2 per unit. About 3.5pc electricity was generated by diesel-based power plants at about Rs20.2 per unit fuel cost.

Know more: Power tariff raised to salvage IMF talks

As a consequence, the fuel cost of power generation in September stood at Rs6.77 per unit against reference price of Rs6.249, necessitating an additional recovery of Rs0.526 per unit from consumers.

SENATORS’ CONCERN: On the other hand, the Senate Standing Committee on Water and Power expressed serious displeasure over non-implementation of its recommendations to compensate consumers for overbilling by the distribution companies last month and some members described it as daylight robbery.

In a meeting presided over by Senator Zahid Khan of the Awami National Party, the committee also expressed concern over absence of the minister and secretary of the ministry of water and power and recommended an increase in the number of slabs in the tariff to provide relief to people.

“The committee has written a letter to the power ministry, urging it to enhance the number of slabs from two to five in a bid to provide relief to the consumers but no action has been taken so far,” Senator Khan said. He said Nepra had changed slabs in April but the government was spending money on audits instead of resolving the issue.

“We have found a mistake and the regulator has admitted it,” he said, adding that the prime minister had also played a trick with the people by asking relevant companies to adjust power bills and also calling for audit. Heavy power bills have been sent again to people and no action has been taken despite the directives of the premier.

Officials of the power ministry said two private companies were conducting audit of the bills and would submit the report within two weeks.

POWER PROJECTS: The committee also expressed concern over escalating cost of the Neelum Jhelum and Nandipur power projects and asked the ministry to provide details of tendering and funding.

Senator Khan said the 450MW Nandipur plant would also be operated on furnace oil and high speed diesel to generate power at Rs36 per unit. He said it would have been better to abandon a project producing electricity at Rs36 or Rs40 per unit that had become a white elephant. “If the government is buying power from independent power plants (IPPs) at Rs14 to Rs16 per unit, why it should set up the Nandipur plant,” he said.

Senator Shahi Syed said the government should have preferred dams rather than the Nandipur plant. “It is negligence of the power ministry and departments concerned,” he said.

Senator Moshsin Leghari said consumers needed cheap electricity and the government should end circular debt and focus on improving the distribution system.

The Nandipur project’s managing director said two turbines of 95.6MW had been completed and were operated on furnace oil and diesel. He said the project could not be abandoned because 50 per cent work had been completed and about $350 million would go waste. He said another two units of the plant would come into production next month and it would achieve full capacity utilisation in January.

Published in Dawn, October 28th, 2014