ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved Rs 1.64 per unit cut in power tariff for K-Electric consumers under the head of monthly fuel price adjustment.
The regulatory authority made this decision during a public hearing under the chair of Chairman Tariq Sadozai. The regulator took this decision while hearing the plea of K-E which sought adjustments of variation incurred in the fuel cost for power generation in November last year.
Earlier, the Central Power Purchasing Agency (CPPA) in its petition submitted that K-Electric saved Rs. 522. 697 million on fuel price variation in the month of November, as compared to September 2014. The savings in kilowatts were 42.953 paisa per kilowatt. The distribution company saved Rs. 1478.694 million on account of power purchase price variation and saved 121.512 paisa per kilowatts. According the data submitted by CPPA, the total fuel cost adjustment was calculated at Rs2001.390 million, which resulted in savings of 164.465 paisa per kilowatts. During the hearing, the authority expressed concerns for producing less electricity from the installed plants and buying 650MW from NTDC. According to the Nepra rules, not producing electricity according to the demand and installed capacity is violation of Nepra’s rule 2.1.
The authority observed that less electricity production by K-electric created a negative impact on overall economy of the country and other provinces had to bear long hours of loadshedding, after K-Electric bought 650MW from national grid.
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