Power price cut by Rs2.76/unit likely today

National Electric Power Regulatory Authority (NEPRA) is likely to approve Rs 2.76 per unit cut in power prices on account of fuel price adjustment for the month of September.

“The decision of relief to the already burdened power consumers is likely today (Thursday) in the scheduled hearing of the regulatory authority (NEPRA),” official sources told Pakistan Today on Wednesday.

Sources further said due to absence of new tariff the power distributing companies (DISCOs) had charged extra amount to electricity consumers in September. However, the consumers would now be given Rs 18billion relief because price of furnace oil had remained low in the oil market.

Earlier, the Central Power Purchasing Agency (CPPA) in a petition, had asked the regulator (NEPRA) to approve reduction in the per unit price of electricity by Rs2.76 for the month of September under the head monthly fuel price adjustment.

Reference Fuel Cost (RFC) for the said month was fixed at Rs6.43/unit, while actual fuel cost remained at Rs 3.67/unit.

The CPPA also told the regulator that despite the availability of RLNG, 10 crore and 10 lakh units of electricity were generated with high speed diesel (HSD) at the cost of Rs1 billion and Rs 25 crore.

Also, electricity with HSD was produced at Rs12.32/unit while for Rs6.58/unit with RLNG. Total 10 billion and 3 crore units of electricity were sold to power distributing companies (DISCOs) that were produced at the cost of Rs36 billion and 80 crore in September, the petition said.