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Electricity worth Rs970.20m wasted in transmission losses in August

Electricity valuing Rs970.20 million has been wasted in the head of transmission losses during the month of August, according to a petition submitted by the central power purchasing agency (CPPA) with the National Electric Power Regulatory Authority (NEPRA), on Wednesday.

The petition seeks reduction in the power tariff by four paisas per unit.

Member Licensing Shaukat Ali Kundi and Member Tariff Khawaja Naeem expressed alarmed after knowing that the fact that electricity of Rs970.20 million has been wasted just in the head of transmission losses in the month of August.

They also expressed concern over the increasing inefficiency in reducing the losses.

The member licensing during the hearing also said that many units of Northern Power Generation Company are not generating electricity but to keep the units standby, 50MW from the Wapda’s system is being consumed, and the financial burden of this was transferred to the consumers, which is sheer injustice to them.

However, NEPRA has reduced the power tariff by five paisas per unit. This would be first relief to the consumers which is too minor reduction in tariff.

Nepra has factually reduced the power tariff by Re0.05 per unit just on account of the fuel adjustment mechanism. The regulator had fixed the reference fuel cost for the month of August at Rs6.69 per unit, but the factual fuel cost on one unit of electricity stood at Rs6.64 meaning by that total fuel cost in the month of August stood at Rs60 billion.

The decision to reduce the power tariff by five paisas per unit will not be effective on the life line consumers who consume just 50 units in one month.

During the hearing, it was also disclosed by the authorities concerned that the cost to generate electricity by using high-speed diesel as fuel is Rs19.15 per unit, furnace oil Rs15.59 per unit, gas Rs5 per unit, coal Rs3.73 per unit and hydro generation cost is just eight paisas per unit. In the month of August, the share of hydro generation in electricity volume was at 39 percent, thermal generation on furnace oil 30 percent, gas 23 percent, HSD 1.34 percent, and nuclear share in electricity generation stood at 3.60 percent.

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