National Electric Power Regulatory Authority (Nepra) on Tuesday approved reimbursement of Rs 2.19 per unit for June and Rs 2.13 per unit for July 2015 to the consumers overcharged by the power Distribution Companies (Discos). The refund will be passed on to the consumers in bills of October and November 2015. Nepra authority took this decision at a public hearing on a monthly fuel adjust mechanism attended by the officials of Central Power Purchase Agency (CPPA) and officials of tariff section of Nepra.
Domestic consumers who consume upto 300 units in one month are bound to pay a increase in tariff under monthly fuel adjustment mechanism and do not qualify for refund as federal government has given assurance to the lenders including the International Monetary Fund (IMF) that those consumers getting subsidy will not qualify for refund. The issue of consumers using upto 300 units came under discussion in the National Assembly's Standing Committee last month wherein Ghulam Mustafa Shah, MNA from Sindh requested Minister of State for Water and Power, Abid Sher Ali to pass on the impact of reduction in tariff to this category of domestic consumers. The State Minister, interestingly, replied that he is not aware that domestic consumers using 300 units per unit are not eligible for refund.
According to CPPA's petition, the fuel cost of electricity delivered to Discos was Rs 4.63 per unit in June 2015 against a reference price of Rs 6.828 per unit, which implies reimbursement of Rs 2.19 per unit. Total energy generated from all sources was 9,926.9 GWh in June 2015, at a cost of Rs 46.047 billion (Rs 4.6387 per unit). However, CPPA delivered 9,629 GWh to Discos of Rs 44.592 billion (Rs 4.6309 per unit). Financial impact of transmission losses in June 2015 has been recorded at Rs 296 million or Rs 0.1389 per unit.
In June, 2015, the generated cost of electricity on HSC was Rs 15.62 per unit, Residual Fuel Oil (RFO) Rs 10.92 per unit, gas, Rs 5.7 per unit, nuclear Rs 1.18 per unit, import from Iran Rs 10.20 per unit, mixed Rs 6.7 per unit and baggasse Rs 5.76 per unit. Generation from wind and solar was 52.89 GWh and 13.95 MW, respectively, but Nepra did not mention the generation cost of electricity from either sources without giving any reason.
Commenting on the issue of solar and wind generation cost, an official of Nepra said the cost of both sources should be part of the basket. In July, total generation from all sources was 10, 627 GWh at a cost of Rs 45.123 billion ie Rs 4.246 per unit. However, CPPA delivered 10,352 GWh electricity to Discos at a cost of Rs 45.094 billion (Rs 4.3559 per unit). The financial impact of transmission losses in July was Rs 273 million or Rs 0.1127 per unit.