Power tariff likely to go down under fuel adjustment charges

ISLAMABAD: Power consumers are likely to get a 12-paisa tariff cut in term of the fuel cost adjustment for May after the hearing of the National Electric Power Regulatory Authority (NEPRA), ARY News reported on Friday.

The National Electric Power Regulatory Authority (NEPRA) will conduct the hearing on June 29 following the petition filed for tariff reduction for Discos on the account of fuel cost adjustment.

The Central Power Purchasing Agency (CPPA) stated that 13 billion units of electricity had been generated in May while the reference fuel cost remained at an average price of Rs5.93 per unit and production cost stood at Rs5.70 per unit.

According to May’s data, the share of hydropower generation was 26.64 per cent while coal power generation contributed 20.13 per cent of the total energy mix.

The contribution of generation from furnace oil-based plants was 5.93 per cent, 11.18 per cent from local gas, 21.74 per cent from RLNG and 9.7 per cent from nuclear power.

Earlier in the day, NEPRA announced to hike peak power tariff for industrial consumers.

Read: Nepra defers decision on K-Electric plea for power tariff hike

The details shared by the regulatory body stated that the peak tariff for industrial consumers was extended until June 30, 2022, and it would be applicable to all power distribution companies including K-Electric.

The federal government, however, aimed at facilitating the industrial units, will provide an additional subsidy to fill the gap of the hike in power tariff.

The NEPRA also rejected a proposal from K-Electric and energy ministry regarding hiking power prices on their own.