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Nepra raises electricity tariff by Rs4.3/kWh for distribution companies’ consumers

NEPRA Approves Reduction In Price Of Electricity By 19 Paise Per Unit

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KARACHI: The unavailability of re-gasified liquefied natural gas (RLNG) to efficient power plants, due to mismanagement, has burdened the electricity consumers of the distribution companies with an additional Rs55.77 million, as the National Electric Power Regulatory Authority (Nepra) has increased the power tariff by Rs4.3/kWh for November 2021 under the monthly fuel cost component (FCC) mechanism, across-the-board except for lifeline consumers.

As per the case officer report based on the data, the average RLNG allocated to the power sector was 375mmcfd against the total demand of 472mmcfd, resulting in the financial impact of Rs55.77 million during November 2021.

RLNG being the imported fuel can be managed through better supply chain management and accordingly the impact of such mismanagement into the unavailability of RLNG can’t be passed on to the consumers.

However, Nepra vide a decision dated February 3, 2021 is of the opinion that non-operation of the efficient power plants due to unavailability of RLNG will be considered as a constraint and no deduction would be made in the monthly FCA on this account.

According to the Nepra’s legal adviser, RLNG is an imported fuel and the responsibility for allowing import of the same lies with the federal government.

The National Transmission and Dispatch Company (NTDC) had conveyed the RLNG requirement to the federal government in a timely manner. However, if the RLNG could not be made available, it may not be made a basis for penalising the relevant power sector entities regulated by the regulatory authority.

The entity responsible for the import of RLNG is not regulated by NEPRA and; therefore, the authority cannot take any action against it.

The distribution companies will reflect the fuel charges adjustment in respect of October 2021 in the billing month of January 2022. The distribution companies will collect over Rs53 billion from the consumers.

According to the determination, the authority has reviewed the information provided by the Central Power Purchasing Agency (CPPA-G), seeking monthly fuel cost adjustment (FCA) and due diligence is done accordingly.

From the perusal of the information so provided by the CPPA-G, the actual pool fuel cost for November 2021 was Rs8.07/kWh, against the reference fuel cost component of Rs3.738/kWh.

The actual fuel charges, as reported by the CPPA-G, for November 2021 increased by Rs4.33/kWh, compared with the reference fuel charges.


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