NEPRA slashes power tariff by Rs2.31 per unit

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Tuesday slashed the power tariff by Rs2.31 per unit on account of fuel cost adjustment (FCA) for December 2022.

The NEPRA in a hearing over December fuel adjustment approved reduction in power tariff by Rs2.31 per unit. The power consumers will be provided overall 18.7 billion relief in February bills.

This reduction in electricity tariff will not be applied over the lifeline as well as K-Electric consumers. The power regulator will announce a detailed decision later.

Earlier, the NTDC officials informed in the hearing that 2400-megawatt power will be generated from four new coal power plants but only 1800MW electricity will be added to the transmission system.

Member NEPRA said that failing to add 600 megawatts to the transmission system will be a national loss.

Chairman NEPRA expressing resentment said that the plants being installed but the power could not be added to the transmission system.

“Why the electricity from Thar Coal power plants not yet included in the power grid,” a Nepra official questioned during the hearing.

The power regulator summoned reply over the matter within two days.

The Central Power Purchasing Agency (CPPA) had moved the application for the lowering power tariff.

According to the CPPA, 20.44 percent of the country’s electricity needs were addressed through hydel generation in December, while 18.7pc with coal. 0.46pc electricity was produced from the furnace oil and 15.13pc from the gas.

Furthermore, the CPPA said over 96 million units of electricity were produced in December, last year for which the cost was fixed at Rs9.31 per unit, but the production cost remained at Rs7.11/unit.