Fuel adjustment: Electricity tariff for 10 distribution companies to go down by 12 paisas/unit

KARACHI: The electricity tariff for the consumers of 10 distribution companies of the Water and Power Development Authority (Wapda) would go down by over 12 paisas/kWh (unit) under the monthly fuel adjustments costs for May 2021.

The National Electric Power Regulatory Authority (Nepra) will conduct a public hearing on June 29 on the tariff petition, seeking a reduction in the consumer tariff for the distribution companies on account of the fuel adjustments cost of electricity consumed in May. The lower fuel cost, on approval by the regulator, would be adjusted in the consumer bills in the upcoming billing month of July.

The Central Power Purchasing Agency (CPPA) on behalf of the distribution companies has demanded a reduction of 12 paisas/unit to pass on the benefit of the better energy mix with the consumers. This reduction in the tariff would not be applicable to K-Electric consumers.

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The CPPA said it had charged consumers a reference fuel tariff of Rs5.9322/unit in May, while the actual fuel cost turned out to be Rs5.8067/unit and; hence, 12 paisas/unit should be adjusted in the consumers’ bills for the next month.

The official data showed that hydropower generation contributed 26.64 percent of the overall energy mix; followed by coal, contributing 20.13 percent, re-gasified liquefied natural gas (RLNG) at 21.74 percent, and indigenous gas, contributing 11.18 percent.

Meanwhile, the National Electric Power Regulatory Authority (Nepra) has approved extension in the concessional tariff of Rs12.96/kWh for the industry at peak hours across the country till June 30, 2021, on the request of the Power Division and Karachi Electric.

The regulatory authority in the matter of motion filed by the Ministry of Energy and with respect to the recommendations of the Industrial Support Package for additional consumption and abolishment of time of use tariff scheme for industrial consumers of distribution companies and K-Electric announced that during peak hours the off-peak rate along with the applicable quarterly adjustments would be charged with effect from November 1, 2020, till April 30, 2021, and the difference, in this regard, would be picked up by the government as subsidy.

Later, the Ministry of Energy submitted that a review would be carried out for the continuation of the package beyond April 2021.

The authority noted the increased subsidized sale would result in incremental fuels and advised the ministry to provide quarterly analysis of subsidized electricity rates and sales.

Nepra also advised the distribution companies and K-Electric to ensure that other consumer categories are not suffered because of the subsidized industrial package to industrial consumers.

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