ISLAMABAD: Electricity consumers may receive relief in their December bills as the Central Power Purchasing Agency CPPA has requested the National Electric Power Regulatory Authority Nepra to approve a refund of Rs0.65 per unit. The agency said distribution companies had overcharged consumers in October and now seek to return the excess amount through the monthly fuel charges adjustment mechanism.
In a petition filed on behalf of ex Wapda distribution companies and K Electric, the CPPA stated that reference fuel charges for October were set at Rs9.3685 per unit. However the actual cost of power generation during the month averaged Rs8.7177 per unit. This difference of Rs0.6508 per unit represents the amount overbilled to consumers which the CPPA now wants Nepra to refund in upcoming bills.
The CPPA explained that the fuel cost adjustment mechanism allows for monthly correction of generation costs based on actual figures. Since October’s fuel costs were lower than projected the benefit is required to be passed on to consumers. Nepra will hold a public hearing before issuing its decision on the refund request which if approved will be reflected in December electricity bills.
Data submitted with the petition shows that total power generation in October reached 9,886 gigawatt hours GWh at a cost of Rs84.1 billion. This translates to a generation cost of Rs8.5062 per unit. The generation mix included hydel coal RLNG gas and nuclear sources with varying per unit costs contributing to the overall average.
After accounting for transmission losses independent power producer IPP obligations and earlier adjustments the net power supplied to distribution companies amounted to 9,630 GWh. The cost of this supply stood at Rs83.949 billion which equates to Rs8.7177 per unit confirming the gap between reference charges and actual cost.
The CPPA further noted that the sale price to Discos also included Rs0.11 per unit related to prior adjustments. Once Nepra approves the request consumers are expected to receive the per unit reduction as a credit in their December electricity bills offering slight but welcome financial relief.
