Power consumers: Rs 2.8/unit refund likely for December 2017

National Electric Power Regulatory Authority (Nepra) is likely to approve refund of Rs 2.80 per unit for the consumers of power distribution companies (Discos) for December 2017, under monthly fuel adjustment formula. The refund has been recommended by the Central Power Purchasing Agency - Guaranteed (CPPA-G) in its monthly tariff petition.
The financial impact of reduction in tariff will be around Rs 16 billion to be passed on to the consumers of Discos except agriculture consumers and those who use less than 300 units in a month. In December, total recorded generation was 7,762 GWh, at a total cost of Rs 39.298 billion (Rs 5.0623 per unit). Of this, hydel generation was 1,231.54 GWh - 15.86 percent of total generation followed by coal-fired generation at 909.6, 11.72 percent of total generation at a cost of Rs 3.9 billion at the rate of Rs 4.29 per unit, gas-fired generation 1,767 GWh - 22.064 percent of total generation at a rate of Rs 4.491 per unit. RFO -based generation was 2,251 GWh - 29 percent of total generation had a cost of 22 billion. RLNG-fired generation was recorded at 395 GWh- 22.77 percent of total generation at a cost of Rs 2.5 billion and a tariff of Rs 6.33 per unit. Generation from HSD was 51.47 GWh came at a total cost of Rs 747.7 million.
In December, 728 GWh nuclear energy was produced which was 9.38 per cent of total generation. The cost of nuclear energy has been calculated at Rs 1.0255 per unit. Pakistan also imported 38.82 GWh from Iran at Rs 10.63 per unit. The volume of mixed energy was 65.35 GWh which constituted 0.84 percent of total generation at a cost of Rs 6.76 per unit. The share of wind power was 188.75 GWh, baggasse 86.39 GWh at a cost of Rs 6.25 per unit and solar generation was 48.78 GWh which was just 0.63 per cent of total generation.
In December, transmission losses were recorded at 232.11 GWh or 2.99 percent against allowed limit of three percent. Per unit cost of transmission losses has been calculated at Rs 0.1673 per unit. According to CPPA, in December net delivered electricity to Discos was 7,762.84 GWh which was 96.86 per cent at a total cost of Rs 39.298 billion or Rs 5.0623 per unit.
CPPA has also included Rs 970 million in its tariff petition at the rate of 0.1249 per unit as previous adjustment/supplement charges. It is unclear whether Nepra will approve previous adjustment or not.
According to the tariff petition, as the cost of net delivered electricity to Discos has been calculated at Rs 5.3283 per unit against reference fuel charges of Rs 8.1037 per unit, CPPA has sought reduction of Rs 2.7754 per unit in tariff for December 2017. The Authority will determine the exact volume of refund at a public hearing to be held on January 25, 2018.