Nepra to Reduce Power Tariff by Rs0.3142 Per Unit for July 2024 Fuel Charges Adjustment

The National Electric Power Regulatory Authority (Nepra) is set to reduce the power tariff by Rs0.3142 per unit, offering some relief to consumers on their September 2024 electricity bills. This reduction is part of the fuel charges adjustment for July 2024.

CPPA’s Petition for Tariff Reduction

The Central Power Purchasing Agency (CPPA) has submitted a petition to Nepra, proposing to refund the Rs0.3142 per unit difference to consumers. The power regulator has accepted this petition and scheduled a public hearing for August 28, 2024, to finalize the decision.

The petition highlights that the reference fuel charges for July 2024 were Rs9.0378 per unit, while the actual per-unit cost amounted to Rs9.352. The CPPA seeks approval to refund the Rs0.3142 differential to consumers.

Breakdown of Electricity Generation Costs

According to the CPPA’s application, a total of 14,880 gigawatt-hours (GWh) of electricity was generated in July 2024, at a cost of Rs133.295 billion. Out of this, 14,411 GWh was supplied to distribution companies (DISCOs).

• Furnace Oil: The cost of electricity generated from furnace oil was Rs30.965 per unit, down from Rs31.6 in the previous month.
• Imported Electricity from Iran: This was priced at Rs25.1575 per unit, a decrease from Rs26.6597 in the previous month.
• RLNG-Based Power Plants: The cost dropped to Rs24.887 per unit from Rs26.328 in the preceding month.
• Local Coal: The cost of local coal-based generation rose slightly to Rs11.3296 per unit from Rs11.029 in the previous month.
• Imported Coal: The generation cost increased to Rs16.2 per unit, up from Rs15.535 in the previous month.
• Local Natural Gas: The cost remained relatively stable at Rs13.7946 per unit compared to Rs13.927 per unit in the previous month.

Overall Generation and Cost Trends

The average generation cost in July 2024 was Rs8.9578 per unit, up from Rs8.3387 per unit in July 2023 and Rs8.8938 in June 2024. Notable changes in power generation include:

• Hydropower Generation: Increased to 5,341 GWh from 4,729 GWh in the previous month.
• Natural Gas-Based Power Generation: Slightly increased to 1,180 GWh from 1,166 GWh in the previous month.
• RLNG-Based Generation: Rose to 2,970 GWh in July 2024 from 2,437 GWh in June 2024.
• Nuclear Power: Slightly decreased to 1,988 GWh from 1,998 GWh in June 2024.
• High-Speed Diesel: No electricity was generated from high-speed diesel in July 2024.

Additionally, RFO-based generation saw a significant reduction to 102 GWh in July 2024, down from 263 GWh in June 2024.

Conclusion

Nepra’s anticipated decision to reduce the power tariff by Rs0.3142 per unit in response to the fuel charges adjustment for July 2024 reflects ongoing efforts to manage electricity costs for consumers. The public hearing scheduled for August 28, 2024, will finalize this decision, potentially offering relief to millions of electricity consumers across the country.