ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday ordered the distribution companies to refund Rs2.80 per unit to consumers to pass on the impact of lower than anticipated generation cost in the month of June.

At a public hearing presided over by Nepra Chairman retired Brig Tariq Sadozai, the regulator concluded that the distribution companies had overcharged consumers by more than 41 per cent in June which should be returned in the billing month of September.

The Nepra chief expressed concern over utilisation of expensive power plants despite availability of cheaper plants on the economic order which caused a loss of Rs4.46 billion to consumers in June.


Nandipur plant is running at a capacity of about 230MW against its actual capacity of 425MW, Nepra told


The regulator held that actual fuel cost of power generation in June was around Rs4.02 per unit against a pre-determined reference tariff of Rs6.82. As such, the distribution companies had overcharged consumers by Rs21 billion which should be refunded to consumers at a rate of Rs2.80 per unit.

The regulator rejected the actual fuel cost claimed by the Central Power Purchase Agency (CPPA) for June at Rs4.49 per unit and disallowed some cost factors, including unauthorised charges for the Nandipur power project.

A team of the CPPA and National Transmission Dispatch Company reported to the regulator that the Nandipur plant was running at a capacity of about 230MW against its actual capacity of 425MW.

The reduced rates will not be applicable to all agricultural and domestic consumers using less than 300 units per month under a decision of the Pakistan Muslim League-Nawaz government that this was already a subsidised segment of population. Likewise, consumers of K-Electric will also not benefit from this relief.

The CPPA reported that furnace oil-based power generation cost stood at Rs6.83 per unit, compared to gas-based average cost of Rs5.12. The fuel cost of RLNG-based plants was reported at Rs5.53 per unit and Rs11.50 for diesel-based plants, no fuel cost for hydropower plants and Rs1.15 per unit of nuclear plants. The fuel cost of electricity imported from Iran stood at Rs10.6 per unit.

The CPPA reported that a total of 10.47 billion units of electricity were supplied to distribution companies in June at a cost of Rs47bn, having an average actual fuel cost of Rs4.49 per unit.

It said hydropower generation contributed the biggest share of about 35 per cent, while furnace oil-based plants generated about 32pc energy. Gas-based plants generated 18pc and RLNG-based plants produced about 7pc electricity for the national grid, followed by 4pc by nuclear and 2pc by diesel plants.

Published in Dawn, July 29th, 2016

Opinion

Editorial

Afghan turbulence
Updated 19 Mar, 2024

Afghan turbulence

RELATIONS between the newly formed government and Afghanistan’s de facto Taliban rulers have begun on an...
In disarray
19 Mar, 2024

In disarray

IT is clear that there is some bad blood within the PTI’s ranks. Ever since the PTI lost a key battle over ...
Festering wound
19 Mar, 2024

Festering wound

PROTESTS unfolded once more in Gwadar, this time against the alleged enforced disappearances of two young men, who...
Defining extremism
Updated 18 Mar, 2024

Defining extremism

Redefining extremism may well be the first step to clamping down on advocacy for Palestine.
Climate in focus
18 Mar, 2024

Climate in focus

IN a welcome order by the Supreme Court, the new government has been tasked with providing a report on actions taken...
Growing rabies concern
18 Mar, 2024

Growing rabies concern

DOG-BITE is an old problem in Pakistan. Amid a surfeit of public health challenges, rabies now seems poised to ...