Power bills to drop in Oct as Nepra approves Rs0.8555/unit refund

ISLAMABAD: Electricity consumers, who paid higher rates in August 2024, will be getting refunds of Rs0.8555/unit in their October bills after the power regulator maintained in its latest decision that the power generation cost was low during the month under review while consumers were charged higher rates.

The National Electric Power Regulatory Authority (Nepra) took the decision in a public hearing on September 26. And on Thursday, it formally notified it. It is to be noted that the Central Power Purchasing Agency (CPPA) had filed a petition with Nepra, seeking a reduction of Rs0.5755/unit on account of fuel adjustment. However, the regulator has allowed extra release of Rs0.8555 per unit to consumers.

NEPRA notified the decision, which shall be applicable to all the consumer categories except lifeline consumers, domestic consumers using up to 300 units, agriculture consumers and Electric Vehicle Charging Stations (EVCS), consumers of all the power distribution companies (Discos) except consumers of K-Electric. It will also not applicable to pre-paid electricity consumers of all categories who opted for pre-paid tariff.

In his note, Member Tariff Mathar Niaz Rana expressed concerns over the significant rise in the bagasse-based tariff, which exceeded local coal prices, sparking widespread consumer criticism. He highlighted that the bagasse tariff remained steady at Rs5.982 per kWh in June and July 2024 but sharply increased to Rs12.48 per kWh in August 2024, surpassing the local coal tariff, which rose more gradually from Rs11.03 per kWh in June to Rs12.27 per kWh in August 2024. Rana pointed out that this substantial increase occurred without adequate consumer participation, leading to dissatisfaction. He referred to the Ministry of Energy’s earlier request to reconsider the bagasse tariff, which was dismissed on legal grounds, and argued that the Ministry’s concerns, made in the public interest, should be reconsidered under the legal framework prior to the 2018 amendments to the NEPRA Act. NEPRA’s other members, including the chairman, rebutted the Member (Tariff)’s claims regarding the rise in bagasse-based fuel costs, emphasizing that the increase from Rs5.98/kWh in July to Rs12.48/kWh in August 2024 was a result of long-delayed adjustments and should not be compared to local coal tariffs.