Massive increase in power tariff likely under FCA of June

Islamabad: Central Power Purchasing Agency (CPPA) and K-Electric have separately asked the National Electric Power Regulatory Authority (NEPRA) to approve a massive increase in power tariff under the head fuel charges adjustment (FCA) for the month of June 2022.

As per details, already burdened masses should get ready to bear a heavy jolt in the form of power price hike as CPPA has asked for Rs9.90 per unit increase and K-Electric asked to jack up electricity price for its consumers by whopping Rs11.38 per unit on account of FCA of June. NEPRA has called separate hearings to consider the applications of both CPPA and K-Electric on July 28, 2022.

Based on the information provided by CPPA in its application on behalf of power distribution companies (DISCOs), total power generation with various fuels was 13,876.14 Gigawatt hour while net delivered to DISCOs was 13,471.05 GWh in the month of June. 

Similarly, power generation in the month of June with hydel source was 24.22 per cent, coal 13.57 per cent, Residual Fuel Oil (RFO) 10.48 per cent, gas 10.66 per cent, Re-gasified Liquefied Natural Gas (RLNG) 24.43 per cent, nuclear 9.12 per cent, wind 5.58 per cent, Iran import 0.37 per cent, mixed 0.07 per cent, solar 0.62 per cent and Baggasse 0.60 per cent. Moreover, reference fuel charges for June were fixed at Rs5.9344 per kilowatt hour and CPPA proposed an increase of Rs9.9095 per kWh.

It is pertinent to mention here that NEPRA, in a notification dated July 7, 2022, has already increased power tariff by Rs9.5180 per kWh for the power consumers of K-Electric and asked to charge this hike in power price in consumers bills to be issued in the months of July and August 2022. Similarly, NEPRA, in another notification dated July 7, 2022, has asked all DISCOs except K-Electric to charge Rs7.9040 per kWh in the billing month of July 2022.