Nepra may approve Rs 2.21 unit refund to consumers

The National Electric Power Regulatory Authority (Nepra) is likely to approve a refund of Rs 2.21 per unit to the consumers of power Distribution Companies (Discos) for October 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 20 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 October, total recorded generation was 10,176 GWh, with a total cost of Rs 50.297 billion (Rs 4.9424 per unit). Of this, hydel generation was 2,438 GWh, 23.96 per cent of total generation, followed by coal-fired generation at 687, 6.75 per cent of total generation, with a cost of Rs 2.949 billion at the rate of Rs 4.29 per unit, and gas-fired generation 1,863 GWh, 18.3 per cent of total generation, at a rate of Rs 4.6340 per unit. RFO-based generation was 2,547 GWh, 25 per cent of total generation, with cost of Rs 24.84 billion, RLNG-fired generation was recorded at 1,493 GWh, 14.67 per cent of total generation, with a cost of Rs 11.755 billion at a tariff of Rs 7.8751 per unit. Interestingly, there was no generation from HSD in October 2017.
In October, 837.60 GWh nuclear energy was produced which was 8.23 per cent of total generation. The cost of nuclear energy has been calculated at Rs0.9657 per unit. Pakistan also imported 48.62 GWh from Iran at Rs 10.63 per unit. The volume of mixed energy was 57 GWh which constituted 0.56 per cent of total generation at a cost of Rs 6.8474 per unit. The share of wind power was 76.76 GWh, baggasse 65.56 GWh at a cost of Rs 6.1428 per unit and solar generation was 62 GWh which was just 0.61 per cent of total generation.
In October, transmission losses were recorded at 300.64 GWh or 2, 95 per cent against allowed limit of 3 per cent. Per unit cost of transmission losses has been calculated at Rs0.1564 per unit. According to CPPA, in October net delivered electricity to Discos was 9,866.4 GWh which was 96.95 per cent with a total cost of Rs 50.632 billion or Rs 5.1318 per unit.
The CPPA has also included Rs 532 million in its tariff petition at the rate of Rs0.0523 per unit as previous adjustment/ supplement charges. It is unclear whether or not Nepra will approve previous adjustment. According to the tariff petition, as the cost of net delivered electricity to Discos has been calculated at Rs 5.1318 per unit against reference fuel charges of Rs 7.3369 per unit, the CPPA has sought reduction of Rs 2.2051 per unit in tariff for October 2017.