MM News

ISLAMABAD: Electricity consumers could be in for some relief as National Electric Power Regulatory Authority (Nepra) considers a possible reduction of more than Rs1 per kWh in October bills.

The CPPA-G has suggested a decrease of Rs1.0159/kWh from previous reference price of Rs10.275 per kWh as the actual fuel cost for October was Rs9.2593/kWh. Nepra is set to hold a public hearing on November 26 to review the proposal and gather input from interested parties.

October’s electricity generation came from a variety of sources, with hydropower contributing the most at 31.06 per cent of the total.

According to Mettis Global, Local coal made up 14.7 per cent at a cost of Rs11.18/kWh, while imported coal provided 8.79 per cent, though at a higher rate of Rs16.9110/kWh. Re-gasified liquefied natural gas (RLNG) accounted for 19.51 per cent of generation at Rs22.6426/kWh.

Nuclear power, one of the cheapest sources, made up 14.05 per cent of the energy mix at just Rs1.5122/kWh.

Electricity from local gas contributed 8.05 per cent at Rs14.2504/kWh, while imported electricity from Iran added 0.41 per cent costing Rs25.3/kWh. Although minimal at 0.02 per cent, furnace oil-based electricity was the most expensive at Rs29.14/kWh.

After factoring in transmission losses and sales to independent power producers (IPPs), the total cost of generation for October was Rs9.2593/kWh. If approved, this adjustment would lower the tariff for consumers of ex-Wapda distribution companies.