Rs 4.11 per unit cut in power tariff: NEPRA
Lifeline consumers and K-Electric consumers will not benefit from the reduction
Dunya News Report (Jibran Dost)
The National Electric Power Regulatory Authority (NEPRA) reduced the electricity tariff for domestic consumers by Rs 4.11 per unit, under the monthly fuel price adjustment formula. Domestic consumers of all public-run distribution companies will benefit from the reduction in the prices of electricity.
However, the lifeline consumers and those of K-Electric will not benefit from the reduction because K-Electric is a privatised company and distributes its own generated electricity to the consumers. Similarly, the lifeline consumers, consuming as much as 300 units per month, are already being offered subsidised electricity.
Earlier last week, a summary suggesting Rs 3.38/unit cut in electricity prices from the Central Power Purchase Agency (CCPA) was sent to the National Electric Power Regulatory Authority (NEPRA).
The CPPA stated that the reduction in the prices had been made after considering the monthly fuel adjustments of the month January. Moreover, according to the summary dispatched by CPPA, the cost of electricity production through high speed diesel was Rs 12.20/unit, Rs 6.28/unit for furnace oil and Rs 6.01/unit for gas during the month of January.
Similarly, the price of nuclear production was Rs 1.12/unit and power imported from Iran was Rs 10.60/unit while the reference price fixed for January was Rs 9.86/unit but the average power production was measured at Rs 6.48/unit, due to which, the authorities should allow the nation to benefit from the reduction in the prices.
Last month, a cabinet committee briefed by Federal Secretary Water and Power Mohammad Younus Dagha told the Prime Minister that 2015 was a peak year for electricity generation of 17,000 Mega Watt (MW). Moreover, an additional 9090 MW of electricity will be added to the national grid by the end of next year.
A total increase of Rs 51 billion was observed in recoveries while as much as Rs 10 billion were saved due to decrease in the line losses.
The secretary expressed that line losses were reduced by 5.8 per cent because of better examining and strategy to eradicate corruption and theft.
On the other hand, Minister of State for Water and Power Chaudhry Abid Sher Ali has stated that Tarbela 4th and 5th extension power projects will add 2820 Mega Watt (MW) low cost hydel electricity to the national grid system.
Both projects in Tarbela would improve the current generation capacity of 3478 MW to 6298 MW. At the same time, 49 per cent work on Tarbela 4th generation extension project has been completed and the project would begin supplying 1410 MW to the national grid system in July 2017.The 5th extension power project would also add another 1410 MW to the system, the minister added.
With regard to the 4th extension power project, the minister expressed that the project was expected to complete in 2018, but on the direct orders of Prime Minister Nawaz Sharif, the project will be operational by June 2017.The World Bank has offered financial assistance to the total cost of the project which is $ 929 million.
