The National Electric Power Regulatory Authority (Nepra) is likely to cut power tariffs by Rs1,035 per unit as part of the monthly fuel price revision for December 2024, bringing some relief to electricity consumers who bear very high tariffs.

The Central Power Purchasing Agency-Guarantee (CPPA-G) has submitted a formal request to Nepra on behalf of electricity distribution companies (DISCOs) proposing a tariff reduction of Rs 1,035. per kilowatt-hour (kWh) compared to the benchmark fuel cost of Rs 10.6364

per kWh.

Nepra has planned

a public hearing on January 30 to assess the proposed tariff revision and its impact on the electricity sector. If the petition is approved, electricity consumers will be refunded in February bills.

The CPPA-G filing stated that a total of 7,516 gigawatt-hours (GWh) of electricity was supplied to DISCOs in December 2024 at an average price of Rs 9.6011 per It also included the demand for recovery of earlier adjustment of Rs2.453 billion from consumers.

During December, hydropower contributed 1,778 GWh, or 22.8% of total electricity production, without costs. 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 Rs 13,408 per 73 per unit.

Nuclear plants supplied 2,065 GWh, or 26.48%, at the lowest price of Rs 1,698 per unit. Meanwhile, electricity imports from Iran accounted for 33 GWh, which came at a significantly higher price of Rs 28.0589.

Renewable energy sources also had their share in the energy mix. Wind generation came in at 262 GWh (3.35%), solar generated 76 GWh (0.97%) and bagasse-based plants contributed 101 GWh at Rs 5.9822.

If Nepra approves the duty reduction request, it will give consumers a respite by lowering their bills for February. However, the audit will not apply to lifeline consumers, charging stations for electric cars and K-Electric consumers.

Nepra will review the application and consider input from stakeholders at the public hearing. Interested parties have been invited to make written or oral objections during the planned proceedings.