As a result of NEPRA Electricity Rates, the Public Electric Power Administrative Power (Nepra) has approved a decrease in power rates for September 2024 of up to Rs 1.28 per unit. The Central Power Purchasing Agency Guarantee Limited (CPPAG) initially requested a reduction of 71 paise per unit, and NEPRA approved a cut of Rs 1.28 per unit. The change, which will appear in bills in November 2024, does not apply to lifeline customers, residential users with up to 300 units, EV charging stations, prepaid users, or agricultural customers. Since the procurement contract ended in 2021, Nepra also permitted interim charges for 40.29 GWh of power imported from Iran. CPPAG asked for a Rs 7.5 billion positive adjustment for earlier quarters.
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Costs and Generation of Electricity
At an average cost of Rs 8.3380 per unit, 12,487 GWh of electricity was produced in September 2024, totalling Rs 104,114 million. While coal-fired plants produced 2,410 GWh at costs ranging from Rs 12.29 to Rs 16.60 per unit, totalling Rs 34,569 million, hydropower led generation, producing 4,838 GWh (38.75%) at zero cost. RLNG-based plants generated 2,039 GWh at Rs 24.96 per unit, while gas-based plants produced 988 GWh at Rs 13.68 per unit. Iran imported 40 GWh for Rs 25.95 per unit, while nuclear power provided 1,596 GWh at the lowest cost of Rs 1.54 per unit.
Positive Consequences
- Increased disposable income for households
- Reduced production costs for businesses
- Potential decrease in inflation rate
- Encouragement for industries to invest in Pakistan
Sector-Specific Advantages
- Increased disposable income for households
- lower manufacturing costs for businesses
- Reduced irrigation costs for farmers
- Industries: Promotion of investment
comparison with Previous Adjustments
The September 2024 power rate cut is substantial when compared to earlier fuel charge changes. NEPRA has already authorized a reduction in fuel prices of 86 paise per unit in August. Customers will now receive an extra 42 paisa discount per unit, making the September reduction a total of Rs 1.28. This indicates that the September adjustment offers further savings in addition to being a continuation of the August reduction. Customers will pay less for power as a result of these two cuts taken together, particularly given the volatility of fuel prices.
Conclusion:
Customers in Pakistan are relieved that the National Electric Power Regulatory Authority (NEPRA) has decided to lower NEPRA Electricity Rates, by as much as Rs 1.28 per unit. This cut, which takes effect in September 2024, is the consequence of lower fuel prices and comes after the Central Power Purchasing Agency Guarantee Limited (CPPAG) first suggested a cut of 71 paise per unit and NEPRA Reduces Electricity Rates 1.28 per unit. This adjustment does not, however, apply to lifeline consumers, residential users using up to 300 units, EV charging stations, prepaid users, or agricultural customers.
FAQ’s:
What is Nepra’s history?
In 1997, NEPRA was made by a Demonstration of Parliament. Its primary duties and goals are to regulate the production, distribution, and transmission of electricity. encouragement of competition in the electrical sector.
Who is in charge of NEPRA?
The federal government selects a chairperson for NEPRA, which consists of four members, one from each of Pakistan’s four provinces. The Authority also elects a vice-chairman by rotation from among the members, who serve for one year.
Which device is used to reduce the electricity bill?
LUCKYMORDEN Super Maxx Power Saver Substantial Gold Power Saving Gadget (ISI) (15kw Save Upto 40% Power Bill Ordinary) Bill Saver.
