Going beyond the Prime Minister’s announcement last week, the Central Power Purchase Agency (CPPA) has sought Rs2.92 per unit reduction in the fuel based power rates for all distribution companies (except K-Electric) for a month owing to combination of cheaper furnace oil and its lower utilisation in power generation.
Admitting the CPPA’s tariff petition, the National Electric Power Regulatory Authority (Nepra) has decided to hold a public hearing on December 19 before passing on to the consumers a relief of about Rs17 billion during the upcoming billing month.
In its tariff petition on behalf of all the distribution companies, except K-Electric, the CPPA explained that its average fuel cost during the month of November 2014 worked out at Rs4.49 per unit — lowest in more than five years — against the reference tariff of Rs7.41 approved by Nepra in advance for November. This resulted in reduced fuel generation cost of Rs2.92 per unit.
