Lahore, JAN 18 /DNA/ – As the National Electric Power Regulatory Authority (Nepra) is likely to slash power tariff by Rs1.035 per unit as part of monthly fuel price adjustment for December 2024, the Ferozepur Road Industrial Association has said that some major cut should be introduced to provide relief to electricity consumers, who are bearing very high tariffs.
FRIA Chairman Shahbaz Aslam said that the Central Power Purchasing Agency-Guarantee has submitted a formal request to Nepra on behalf of power distribution companies (DISCOs), proposing a tariff reduction of Rs1.035 per kilowatt-hour (kWh) compared to the reference fuel cost of Rs10.6364
FRIA asked the government to take prompt measures to bring down the production costs for trade and industries to enable them to compete in the international market.
FRIA Senior Vice Chairman Shahbaz Aslam said that trade and industry is currently having difficulty to compete the global market because of rapid increase in production costs. He said that the high cost of production is not good for our exports.
“The cost of production is a major factor, which makes an industry stand out among competitors in the world market,” he explained.
He said that the Nepra has scheduled a public hearing for January 30 to assess the proposed tariff revision and its impact on the power sector. If the petition is approved, electricity consumers will get refund in February bills.
The CPPA-G application stated that a total of 7,516 gigawatt hours (GWh) of electricity was delivered to DISCOs in December 2024 at an average cost of Rs9.6011 per unit, which translated into a total cost of Rs72.164 billion. It also included the demand for recovery of previous adjustment of Rs2.453 billion from consumers.
During December, hydroelectric power contributed 1,778 GWh, or 22.8% of the total electricity generation, at zero cost. Local coal-fired power plants generated 784 GWh at Rs17.66 per unit while plants running on imported coal produced 124 GWh at Rs19.1529 per unit.
Gas-based power plants contributed 960 GWh (12.3%) at Rs13.408 per unit and re-gasified liquefied natural gas (RLNG)-fired power plants generated 1,615 GWh, representing 20.7% of the energy mix at a higher cost of Rs22.73 per unit.
Renewable energy sources also had their share in the energy mix. Wind power production came in at 262 GWh (3.35%), solar plants generated 76 GWh (0.97%) and bagasse-based plants contributed 101 GWh at Rs5.9822 per unit.
Shahbaz Aslam said that if Nepra approves the tariff reduction request, it will offer some respite to consumers by lowering their bills for February. However, the revision will not apply to lifeline consumers, electric vehicle charging stations and K-Electric consumers.
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