Nepra reduces power tariff of distribution companies

National Electric Power Regulatory Authority (NEPRA) has reduced electricity tariff of distribution companies (Discos) by 9 paisa per unit in accordance with the monthly fuel adjustment formula. The decision was taken by the Authority in its meeting on Tuesday after hearing the arguments of the Discos'' representatives and going through the documents submitted by the petitioners.
The government recently increased power tariff by two per cent across the board after the conclusion of talks with the International Monetary Fund (IMF) team. Pursuant to section 31(4) of the Nepra Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determinations of ex-Wapda Discos , the Authority has to review and revise the approved tariff on account of any variations in the fuel charges on monthly basis.
Based on the information provided by the Central Power Purchasing Agency (CPPA), the actual fuel charges, total sale price and cost of generation for the month of February are as follows: hydel- 1787.57 Gwh, 31.31%, Rs 211.33 million, Rs 0.1182 kwh, coal-5.18 Gwh, 0.09%, Rs 15.86 million, Rs 3.0631 kwh, HSD-6.444 Gwh, 0.11%, Rs 95.43 million, Rs 14.8220 kwh, RFO-2401.48 Gwh, 42.06%, Rs 29,150.79 million, Rs 12.1387 kwh, gas-1264.51 Gwh, 22.15%, Rs 4,39089 million, Rs 3.4724 kwh, nuclear-172.55 Gwh, 3.02%, Rs 193.10 million, Rs 1.1191 kwh, and import from Iran-18.31 Gwh, 0.32%, Rs 78.62 million, Rs 4.2950 kwh. Mixed-5.3.08 Gwh, 0.93%, Rs 610.40 million, Rs 11.5000 kwh.
On the basis of the data, Discos had requested a decrease 7.42 paisa per unit in February over the reference fuel charges ie Rs 6.4931/kwh for Discos for February 2011 but Nepra experts calculated it at 9 paisa per unit. According to Nepra, the impact of 9 paisa per unit reduction in tariff will be passed on to the consumers in the electricity bills of March. Nepra did not allow the Discos to charge millions of rupees interest from consumers to be paid to the Independent Power Producers (IPPs) as interest on late payment.