NEPRA cuts base tariff by Rs1.49 per unit
The National Electric Power Regulatory Authority (Nepra) on Wednesday reduced the base power tariff by Rs1.49 per unit for fiscal year 2025-26.
The recommendation in this regard has been sent to the federal government.
Last month, the government moved to revise the base power tariff for the coming fiscal year, suggesting a modest cut ranging from 30 paisas to up to Rs2.25 per unit under seven different scenarios.
Assuming stable economic conditions and an exchange rate of Rs280, the average base tariff would drop by Rs2.25 per unit to Rs24.75 in 2025-26, compared to the current rate of around Rs27 per unit.
If the local currency depreciates to Rs300 against the dollar, the base tariff would decrease by approximately 30 paisas per unit. This decrease is primarily driven by a drop in capacity payments.
Meanwhile, power consumers across the country, excluding K-Electric (KE) and lifeline users, may face a 10-paisa per unit increase in electricity tariffs under the Fuel Charges Adjustment (FCA) for May 2025.
The power regulator is scheduled to hear the proposed hike of Rs0.1015 per kilowatt-hour (kWh) on June 30. The session will also be available online via Zoom.
The proposal has been submitted by the Central Power Purchasing Agency Guarantee Limited (CPPA-G) on behalf of Ex-WAPDA Distribution Companies (XWDISCOs).
According to CPPA-G, the actual fuel cost in May stood at Rs7.4940/kWh, compared to a reference cost of Rs7.3925/kWh, resulting in the requested hike.
In May, 12,755 GWh of electricity was generated at a cost of Rs99.153 billion, averaging Rs7.7739/kWh. After deducting transmission losses of 355 GWh (2.78%) and adjustments, 12,367 GWh was delivered to DISCOs at Rs92.676 billion or Rs7.4940/kWh. Hydel power led the generation mix with 37.98% (4,844 GWh), followed by RLNG (16.99%), nuclear (15.77%), and local coal (11.08%). Imported coal contributed 6.24%, while gas added 6.92%. Other sources included RFO, solar, wind, and bagasse.
The power regulator has invited stakeholders to join the hearing and submit feedback. If approved, the FCA will apply for one month only.
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