Govt Might Refund 33% of Your Previous Electricity Bill

Due to cuts in fuel prices, our electricity bills may see lower digits for the month of June (those who have already paid will be compensated in the coming month). This will apply for all distributors except K-Electric.

The Petition

It is common practice in the power sector to charge power users at a surplus amount than the expected price of fuel. This amount is then adjusted in the subsequent month when the actual cost is calculated. This is a useful practice to drive down financial costs for the power generating companies.

In light of this, the Central Power Purchasing Agency-Guarantee (CPPA-G) has filed a petition before the National Electric Power Regulatory Authority (NEPRA) requesting a reduction in tariff for the month of June. Nepra will look into the matter in a public hearing on July 25th.

CPPA-G states in the petition that a tariff of Rs 6.83 per unit was charged from consumers while the actual price based on the cost of fuel came out to be Rs 4.7 per unit. Thus an amount of Rs 2.134, which is roughly 33% of bills, needs to be returned to consumers for each unit consumed.

It should be noted though that the concession in tariff will not be applicable to agricultural consumers and residential consumers who used less than 300 units per month. This was decided by the government based on the fact that these categories are already being provided electricity at subsidised rates.

Breakdown of the Power Generation

The price of the electricity unit is calculated based on the cost of production from various sources like hydro, coal, oil, diesel etc. The percentage of electric power produced from each of these sources is then considered and a weighted average cost is calculated.

The bellows numbers represent the values on which the unit price was calculated for the month of June.

  • Hydropower contributed 30.5% with no fuel costs.
  • Wind and solar plants had a 2.2% share, again with no fuel used.
  • Furnace oil plants produced 22.34% at  Rs 9.5/unit.
  • Natural gas came at a lower 18.43% at Rs 4.26%/unit.
  • Liquefied natural gas (LNG) had a 12.28% share with a cost of Rs 7.45/unit.
  • Power produced using coal contributed to 5.7% at Rs 4.3/unit.
  • High Speed diesel came contributed 1.36% at the highest rate of Rs 14.36/unit.
  • Energy imported from Iran was less than 0.5% at Rs 10.63/unit.

The cost per unit was Rs 4.44 while distributors were supplied 2% lower power, increasing the cost to Rs 4.7 per unit.

  • What Except : K-Electric ????
    Kiya Karachi Pakistan Ka Hissa Nahi ????
    Karachi Walo Ne Kiya Bigara Hai Hukumat Ka Ya Kisi Ka Bhi ! Ek Sea He to Hai Hamare Pas

    • Brother k electric has different Tarrif. Nepra surcharge and discount does include k electric.
      Like in multan mepco charge a surcharge per unit every month . This surcharge makes unit price maximum. Like upto 20 rupee per unit in some cases domestic. Then next month bill include previous month actual unit price adjustment called fuel price adjustment.

      In other words we pay high unit price at 1st place. And then get adjusted later.

      This is not the practice with k electric. So that’s why this formula doesn’t include k electric.

    • Bhai, Karachi Pakistan ka nahin, Garhi Khuda Baksh ka hissa hai. Usay Zardari Uncle aur Faryal aunty ne bech diya hai, and as it’s a private firm, it doesn’t comes under NEPRA. That was done all thanks to Zardari and the people who voted and elected him to sell Pakistan for 5 years.. Kal bhi B B zinda thi, Aaj bhi B B zinda hai.

      At least Nawaz Sharif hasn’t sold LESCO or IESCO like K Electric (KESC) has been sold.

      • Bik Gaya tha : Ok But PM Or Saddar Pure Mulk Ka Hota Hai Na K Cities Wise :
        Usko to Dekhna Chahyeh K Zulm Hai Ye Karachi Par
        Kiya Wo Bhi Andhe Hai Hum Ne to Nahi Kaha tha Green Bus Do :
        40 Arab Bacha K Electric Pe Lagate Pani Pe Lagate

        • Khud ko sahi kro ap log… Ap ko ksi bat ka pta hita nahi hr post pr comment daina lazmi smjha hua hai ap ne…. Ap k liye hukoomat ne Karachi ka nizaam alg kia hai phr bhi ap logon ka zehan wesa he reh gya jesa MQM ne bnaya hua hai… Brain washed people

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