NEPRA scrutinizes Rs4.34 per unit hike in power tariff under FCA

Reference fuel charges for July 2022 were fixed at Rs6.29 per unit while actual were recorded at Rs10.98 per unit

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) on Wednesday scrutinized Rs4.34 per unit increase in the electricity price under the head Fuel Charges Adjustment (FCA) of July 2022.

As per details, NEPRA conducted a hearing to consider the application of Central Power Purchasing Agency (CPPA), seeking Rs4.69 per unit hike in the power tariff on account of FCA of July.

NEPRA’s hearing was held under the NEPRA chairman Tauseef H. Farooqi wherein NEPRA members Rafique Ahmed Shaikh and Maqsood Anwar were in attendance.  

According to NEPRA, based on initial scrutiny of data FCA of July should be Rs4.34 per unit. On the other hand CPPA on behalf of all power distribution companies (DISCOs) excluding K-Electric had asked to jack up power price by Rs4.69 per unit.

NEPRA said that the FCA of July will be applicable for one month and this FCA will not be applicable on the domestic lifeline consumers of DISCOs and consumers of the K-Electric.

It is relevant to note that the FCA of July is Rs5.55 per unit less than the FCA of June which was earlier fixed at Rs 9.90 per unit by the NEPRA.

The CPPA had earlier submitted that the total electricity generated with various fuels in the month of July was recorded at 14,150.91 GWh, at a basket price of Rs10.7093 per unit. The total cost of energy was Rs151.546 billion.

The power generation with hydel source was 4,976.93 GWh constituting 35.15% while power production with coal-fired power plants was 1,802.19 GWh which was 12.74% of total generation at a price of  Rs20.2176 per unit and power production with high speed diesel (HSD) was recorded at 205.97 GWh which was 1.46% of the total power generation, at a cost of Rs27.8886 per unit in the month of July 2022.

Similarly, power generation with RFO was 876.92 GWh which is 6.20% of total generation calculated at Rs35.6984 per unit, while the generation from gas-based power plants was 1,466.41 GWh which is 14.603% of the total generation, totaling Rs9.9585 per unit and the generation from RLNG was 2,119.55 GWh which is 14.98% of total generation at Rs28.2899 per unit.

Likewise, power generation from mixed sources was 16.92 GWh at a price of Rs4.7567 per unit, generation from bagasse recorded at 40.63 GWh, the price of which has been calculated at Rs5.9822 per unit. The electricity generated from wind was recorded at 518.50 GWh which is 3.66% of total generation and solar at 70.77 GWh which is 0.50% of the total generation in July.

Moreover, electricity generation from nuclear sources was 2,009.54 GWh which came out at Rs1.0493 per unit which is 14.20% of the total generation, and electricity imported from Iran was 46.57GWh that amounted to Rs22.8380 per unit in the said month.  

Profit also learnt from data submitted by the CCPA-G with NEPRA that net electricity delivered to Discos in July 2022 was 13,760.32 GWh at a rate of Rs10.9833 per unit, total price of which was Rs151.133 billion.

The CPPA-G in its tariff adjustment request advocated that the reference fuel charges for July 2022 were fixed at Rs6.2879 per unit while the actual fuel charges were recorded at Rs10.9833 per unit. So an increase of Rs4.6954 per unit in the power tariff should be made for the month under FCA mechanism.

 

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Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected]

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