Hammad slams PML-N as power tariff crosses Rs50 per unit

• Hammad Azhar slammed PML-N for producing expensive electricity
• He said power tariff has increased by more than Rs50 per unit.
• R-LNG is the most expensive source of power generation.

LAHORE: Pakistan Tehreek-e-Insaf (PTI) leader Hammad Azhar slammed the PML-N government for producing the most expensive electricity ever in the history of the country.

In a tweet, the former finance minister said during the previous tenure, the PML-N signed contracts for expensive power plants with imported fuel.

“Now this time within 12 months, it destroyed the economy and weakened the Pakistani rupee by more than 50%. All this resulted in a unit of electricity costing Rs.50.”

“This country needs elections and reforms, not looting,” he said.

The government has acknowledged that imported liquefied natural gas (LNG) has become the most expensive fuel for power generation in the country, even surpassing furnace oil. The government had shifted from furnace oil and set up a LNG infrastructure almost a decade ago.

The price of power cost Rs51.42 per unit cost from imported LNG, which is regasified before being used as a fuel.  It is followed by furnace oil-based power generation, projected at Rs48.56 per unit.

National Electric Power Regulatory Authority (Nepra) has reinforced that hydropower, at Rs6.94 per unit, remains the cheapest source of electricity supply to the national grid.

Most of the power generation capacity contracted by the PML-N government in its previous tenure (2013-18) pertained to regasified liquefied natural gas (RLNG) and coal.

The power regulator has put on record that the key factor behind the skyrocketing electricity prices is fixed capacity charges, 71 percent of the total cost, while energy cost is around 29 percent of the total power-purchase price.

The regulator said that around 30pc of total generation during the current year is expected from hydel, 17pc from local coal, 12pc from imported coal, 18pc from nuclear, 10pc from local gas, 5pc from RLNG, 2pc from furnace oil and the remaining around 6pc would be contributed by renewables, such as wind, solar and bagasse.

“The generation mix has shown considerable improvement, with around 63pc being forecasted from indigenous resources plus around 18pc from low-cost nuclear sources,” Nepra said.

The third-most expensive generation after RLNG and furnace oil is imported coal at Rs40.54 per unit, followed by wind power (Rs33.64) and then electricity imported from Iran (Rs24.73).

The sixth costliest power source is local coal (at Rs23.97 per unit), followed by nuclear fuel (Rs18.38) and solar (Rs15.04). The next three cheapest sources of power at present are bagasse (Rs14.83 per unit), local gas (Rs13.02), and the most cost-effective hydropower at Rs6.94.