Fuel adjustment: Nepra approves refund of Rs 2.06 per unit for November

National Electric Power Regulatory Authority (Nepra) on Tuesday approved refund of Rs 2.06 per unit for consumers of for ex-Wapda power Distribution Companies (Discos) for November 2015 under the monthly fuel adjustment mechanism. The decision was taken at a public hearing presided over by Chairman Nepra, Brigadier Tariq Saddozai (retired) on a petition filed by the Central Power Purchase Agency (CPPA) in which the latter had sought reduction in tariff by Rs 1.98 per unit.
Domestic consumers who use up to 300 units in a month are not eligible for the refund under monthly fuel adjustment mechanism as the government has assured the lenders, including IMF, that those users who consume up to 300 units and get subsidy should not be given refund. The chairman Nepra said that Discos would refund Rs 20 billion to the industrial, commercial, domestic and agricultural consumers across the country. However, the new tariff would not be applicable to K-Electric.
According to the CPPA petition, the fuel cost of electricity delivered to Discos was Rs 5.32 per unit in November 2015 against a reference price of Rs 7.30 per unit. Total energy generated from all sources was 6,722.13 GWh in November at a cost of Rs 27.531 billion. However, the CPPA delivered 6,540 GWh to Discos at a cost of Rs 34.831 billion. The financial impact of transmission losses has been recorded at 2.59 percent or 173.98 GWh. However, the CPPA failed to submit total amount of transmission losses but said per unit cost of transmission losses stands at Rs 0.1441 per unit. In November, hydel generation was recorded at 2,302GWh which was 34.25 percent of total generation, HSD 28.4 GWh (0.42 percent share) at a cost of Rs 12.48 per unit, RFO 1,856 GWh (27.61 percent of total generation) at a cost of Rs 7.432 per unit, gas 2,188 GWh at a cost of Rs 5.75 per unit and nuclear 219.16 GWh at a cost of Rs 1.125 per unit.
Pakistan imported 34.45 GWh electricity in November from Iran at a cost of Rs 10.5 per unit. Cost of electricity mix has been calculated at Rs 7.49 per unit. However, the cost of electricity generated by using baggase as fuel has been estimated at Rs 4.0957 per unit. The CPPA has requested the Nepra to adjust Rs 1.10 per unit in tariff of November as supplemental charges.