Power Tariff Reduction approved in Electricity Bills January 2025
Staff Report:
The national electric power regulatory authority (Nepra) has reduced the power tariff up to Rs 0.75 per unit for the consumers of Power distribution companies (Discos) and K-electric (KE) consumers on account of fuel charges adjustment.
The power regulator has cut the power tariff up to Rs Rs. 0.7556 per unit in the applicable tariff for XWDISCOs due to variations in fuel charges for November 2024.
Power Consumers to Face Rs 8.7b Burden in Electricity Bills
It also reduced the power tariff of Rs 0.4919/kWh for October 2024 for KE consumers. The reduction in tariff will be reimbursed in the electricity bills of January 2025.
While discussing the tariff application of Discos, the power regulator said that NTDCL reported provisional transmission and transformation (T&T) losses of 244.158 GWh, equivalent to 2.946%, based on energy delivered on the NTDCL system during November 2024.
Additionally, NTDC reported T&T losses of 19.528 GWh, or 3.391%, for the PMLTC (HVDC) line. NTDCL is allowed T&T losses of 2.639% at the 500 kV and 220 kV network levels.
For PMLTC (HVDC), the allowable T&T losses are up to 4.3%. Accordingly, for November 2024, T&T losses amounting to 263.686 GWh have been verified for the NTDCL system at the 500 kV and 220 kV networks and the PMLTC (HVDC), keeping within the limits allowed by the Authority. These losses have been included in the monthly FCA calculations.
CPPA-G also provided details of net metering units procured by DISCOs. As per the data, DISCOs purchased 80.78 GWh from net metering during November 2024. Additionally, CPPA-G reported that 18.22 GWh were supplied by power producers with bilateral contracts with DISCOs. Regarding the fuel costs of SPPs/CPPs, CPPA-G provided only NTDC monthly energy data for these suppliers to DISCOs but did not include fuel cost claims or data with the FCA submission.
The adjustments shall apply to all consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, Electric Vehicle Charging Stations (EVCS), prepaid electricity consumers of all categories opting for prepaid tariffs, and agricultural consumers of all XWDISCOs.
The power regulator also clarified that the negative adjustment on account of monthly FCA also applies to domestic consumers with Time of Use (ToU) meters, regardless of their consumption level.
The adjustment shall be shown separately in the consumers’ bills based on units billed in November 2024. The terms and conditions of the Winter Demand Initiative decision dated December 6, 2024, will also apply to this FCA, where applicable. XWDISCOs shall reflect the fuel charges adjustment for November 2024 in the billing month of January 2025.
KE Tariff
The power regulator has also slashed the power tariff up to Rs 0.49 per unit for KE consumers on account of fuel adjustment charges for October 2014 that would be passed on to consumers in the billing month of January 2025.The total impact of relief amounts to Rs. 843 million.
The power regulator has allowed FCA provisionally, subject to adjustment once the Authority approves the new MYT for KE for the period FY 2024–30. Any difference in cost based on the newly approved MYT will be allowed in future adjustments once the MYT is notified.
The reduction will apply to all consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, EVCS, prepaid electricity consumers of all categories opting for prepaid tariffs, and agricultural consumers. The negative adjustment on account of monthly FCA also applies to domestic consumers with ToU meters, regardless of their consumption level.
It shall be shown separately in consumers’ bills based on the units billed in the respective month to which the adjustment pertains. KE shall reflect the fuel charges adjustment for October 2024 in the billing month of January 2025.
