ISLAMABAD: Prime Minister Nawaz Sharif has lauded National Electric Power Regulatory Authority’s (Nepra) for cutting down the electricity tariff by Re 0.47/unit.
The details were submitted by the Ministry of Water and Power in lieu of the Monthly Fuel Price Adjustment for the month of October 2014.
The Ministry of Water and Power had submitted details of the fuel mix to slash the tariff for consumers on the directives of the prime minister and is following a strict merit order to ensure efficient fuel mix for lowering the cost of electricity generation.
The government is also making connected efforts to change the energy mix from thermal to other affordable sources – including coal and hydro generation – to bring down the cost of electricity production.
The premier said the practical step taken by the government is showing results and its benefits are cascading to the masses.
He expressed the hope that a further reduction in oil prices next month will bring considerable solace to the masses at large. The government is committed to provide this relief in the coming months as well, he resolved.
Nawaz further observed that provincial governments must also take practical steps to ensure relief to the public in lieu of the continuing decline in the oil prices in the country.
Nepra has worked out an average cost for electricity for Fiscal Year 2013-14 which is 7.5462 per kilowatt hour.
During a public hearing held at Nepra head office, Central Power Purchasing Agency (CPPA) while filing the charges for ex-Wapda distribution companies for the month of October, 2014 stated that total 8123 Gwh electricity was delivered to Discos, worth Rs57,510.40 million.
According to the data, the total energy generated was 8326.37 Gwh, worth Rs57,273 million. The per unit cost of the electricity was 6.8786, but after adding line losses of 196.99 Gwh, minus cost sale to IPPs, and supplement charges the per unit cost sums up to Rs7.0793.
According to Nepra officials the total difference between reference cost and the cost actually incurred on power generation during the month of October, 2014, was Rs.4795.
As a consequence, the actual fuel cost of power generation in Oct stood at Rs7.06 per unit against the reference price of Rs7.54 per unit, necessitating the tariff reduction of 48 paisa per unit.
