NEPRA Approves Rs. 6.5 Billion Refund for Power Consumers

National Electric Power Regulatory Authority (NEPRA) has announced a relief of Rs 6.5 billion for electricity consumers. The Wapda ex-distribution companies overcharged Rs 62 paisa per unit in electricity bills for April.

The Central Power Purchase Agency (CPPA) recommended a relief of Rs 45 paisa per unit. However, as per NEPRA’s calculation, the amount that the companies overcharged under fuel-adjustment costs turned out to be Rs. 62 paisa per unit.

It is normal practice for companies to charge fuel costs at higher rates in advance. This ensures a smooth flow of operations in terms of finances and the companies later refund the overcharged amount after adjusting fuel costs.

There is another twist in the tale here though – the companies don’t fully refund the whole amount. Instead, they keep around 50% of the announced refund as windfall saving.

The relief will not be given to the residential consumers who consume less than 300 units per month. Furthermore, any sector getting the electricity at subsidized rates is exempted from the refund as well.

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The Refund

According to the public hearing headed by Nepra Chairman Brig (Retd) Tariq Saddozai, the per unit cost charged for April was Rs 6.7227. However, the actual cost of per unit of electricity was Rs 6.27 after adjusting all costs. The CCPA calculated the decrease at Rs 45 paisa per unit, however, NEPRA rejected their calculations and announced a refund of Rs 62 paisa per unit.

Power Generation Costs

Around 10135.08 GWh of electricity were generated in the month of April. After the transmission losses of 2.54%, 9877.93 GWh were delivered to the distribution companies, CPPA added. The electricity was generated at following rates;

• Wind and Solar power plants generated 2.04% and 0.70% of total electricity at no fuel costs.
• Furnace oil-based plants produced 15.30% of total electricity at Rs 11.22 per unit.
• Natural gas power plants contributed about 16.24% to the total output at Rs 5.07 per unit.
• Nuclear-based plants generated 8.25% of total electricity at a cost of Rs 1.04 per unit.
• 26.63% of total electricity was generated from imported Liquefied Natural Gas at a per unit cost of Rs 9.01.
• Coal-based power plants produced 13.83% of total electricity at Rs 6.44 per unit cost.
• 0.64% of total electricity was imported from Iran at a cost of Rs 11.04 per unit.

Hydropower production increased as well to stand at 15.07% for April as compared to the March’s figure of around 10% of total electricity.