• Nepra reviews data, finalizes uniform reimbursement rate of Re0.7556 per unit.
• Discos’ adjustments stem from decline in fuel costs of Rs 7.2274. per unit.
• Nepra notes inefficiencies in operating Thar coal-fired power plants at partial capacity.

ISLAMABAD: As the National Electric Power Regulatory Authority (Nepra) has directed electricity distribution companies including K-Electric (KE) to refund excess charges collected earlier, power consumers across Pakistan can expect reduced electricity bills in the current month.

Nepra approved refunds of Re0.7556 per

According to the Central Power Purchasing Agency-Guarantee (CPPA-G), the adjustment for discos is derived from a decrease in actual fuel cost of Rs 7.2274. per unit in November compared to the benchmark cost of Rs 7.8609.

Nepra reviewed the data and finalized a uniform reimbursement rate of Re0.7556 per

Nepra noted inefficiencies in operating Thar coal-fired power plants at partial capacity, which increased the cost per unit. unit due to fixed charges linked to coal mining. “Increased utilization of these facilities will allocate fixed costs more efficiently, reducing the total cost per unit,” the authority noted.

Delays in the supply of local Thar coal to Karachi’s Lucky Coal power plant also raised concerns. Nepra directed the CPPA-G to submit a detailed report on this issue in its next FCA hearing, warning that such delays are exacerbating dependence on expensive imported fuels and draining foreign exchange reserves.

K-Electric, which serves Karachi and adjoining areas, initially sought a refund of 0.27 Ret. per 843 million Rs.

During its analysis, Nepra corrected KE’s calculations, including adjustments for fuel costs from suppliers such as Fauji Power Company Limited (FPCL) and CPPA-G. The authority also addressed inconsistencies in KE’s high-speed diesel costs, ensuring accurate billing for consumers.

In the case of Discos, Nepra highlighted the higher Energy Purchase Price (EPP) of Thar Coal Block-I Power Generation Company (Rs. 21.93 per unit) compared to Port Qasim’s EPP (Rs. 15.74 per unit). The authority emphasized that better planning and utilization of Thar coal plants can reduce costs significantly.

The adjustments also included provisional claims such as Rs119 million for energy supplied by Tavanir Iran and other cost revisions pending technical verification. Nepra postponed these claims to avoid sudden price hikes for consumers.