ISLAMABAD - The National Electric Power Regulatory Authority on Tuesday notified reduction of Rs2.68 per unit in electricity rates of all distribution companies, except K-Electric, on account of monthly fuel price adjustment for the month of May 2015.

“From perusal of the information so provided by CPPA, it has been observed that the actual pool fuel charge for the month of May 2015 is Rs. 4.8087/kWh, against the reference fuel cost component of Rs. 8.0982/kWh”, the decision said. The reference charges figures of Rs. 8.0982 are from the old determination for FY 2013-14.

As per details provided by CPPA, 60.435 GWh were purchased by DISCOs from small and captive power plants, with actual fuel cost of Rs. 407.528 million, however, the same works out to be Rs. 407.350 million.

In a gimmick of digits the notification gave an impression that line losses has been decreased. “CPPA has reported NTDC transmission losses of 254.389 GWh (2.66%) during May 2015, which are lower than the Authority’s assessed transmission losses of 3%.

According to data the authority has already allowed world’s one of the highest line losses up to 13.5 percent. One per cent system losses work out to about Rs6b.

“Accordingly, actual losses worth 254.389 GWh (2.601%) Fuel Charges Adjustment for DISCOs for the month of May 2015 incurred by CPPA, subtraction of Rs. 5600 million for GIDC, the authority allow decrease of Rs. 2.6872/kWh in the applicable tariff for Ex-WAPDA DISCOs on account of variations in the fuel charges for the month of May 2015”, notification said.

The authority came hard on Sui Southern Gas Company Limited (SSGCL), Sui Northern Gas Pipelines Limited (SNGPL), Ministry of Water & Power and Ministry of Finance, for absence from the public hearing, held last month, despite serving of notices.

The reduction of Rs.2.6872 per unit would be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming upto 300 units and agricultural consumers of all the DISCOs. The said adjustment shall be shown separately in the consumers’ bills of September.