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Nepra slashes power tariff by Rs4.87 per unit for Karachi consumers

MM News Staff by MM News Staff
September 29, 2022

ISLAMABAD: Much needed relief for Karachi consumers as the National Electric Power Regulatory Authority (NEPRA) on Thursday approved Rs4.87 per unit decrease in the power Tariff for K-electric consumers.

The fuel adjustment charges’ pricing cut would save K-electric customers Rs7 billion, however, Lifelong KE customers would not be benefited from this relief.

As of right present, NEPRA hasn’t made a comprehensive announcement.

The production figures for K-Electric and the CPPA, according to Chairman NEPRA, do not coincide.

The government is suffering a loss of Rs15 per unit, according to the chairman of NEPRA, which is eventually borne by the consumer.

The CPPO application stated that various power sources generated a total of 13.638 billion units of electricity in August. The cost of reference fuel was Rs9.89, and the average production cost for August was Rs10.11 per unit.

NEPRA was advised to increase the power rate by Rs0.22 per unit in fuel adjustment costs for August by the Central Power Purchasing Agency (CPPA).

Hydraulic power plants generated 38.10% of the electricity in August, while coal-fired power plants generated 15.39%, Furnace oil produced 7.27% of the electricity, RLNG 12.49%, nuclear power plants 13.34%, and local gas 9.36%, according to the CPPA’s data.

Electricity generated from coal cost Rs20.54 per unit, furnace oil Rs35.61, local gas Rs10.49, and RLNG power cost Rs24.72 per unit.

The CPPO application stated that various power sources generated a total of 13.638 billion units of electricity in August. The cost of reference fuel was Rs9.89, and the average production cost for August was Rs10.11 per unit.

Given the variation in fuel costs on the global market, the CPPA advised NEPRA to increase the fuel tariff by Rs0.22.

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