Power prices set to be cut by Rs2.19 per unit under Dec 2022 adjustment

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (NEPRA) to approve a Rs 2.19 per unit cut in the power tariff on account of fuel charges adjustment (FCA) for the month of December 2022.

CPPA made the request on behalf of power distribution companies (DISCOs) except the K-Electric, and NEPRA is scheduled to conduct a hearing on January 30. Once approved, the decrease in electricity price will provide a sigh of relief to already burdened power consumers.

The CPPA, in its application, has submitted that the total electricity generated with various fuels in the month of December 2022 was recorded at 8,416.81 gigawatts hours (GWh), at a basket price of Rs 7.0441 per unit. The total cost of energy was Rs 59,289 million.

Power generation from hydel was 1,720.43 GWh, or 20.44% of production, while coal-fired plants produced 1,520.93 GWh, or 18.07%, at a price of Rs 11.4954 per unit. Power generation from residual fuel oil (RFO) was 38.91 GWh, or 0.46% of total generation, at Rs 25.7971 per unit.

Gas-based plants produced 1,273.80 GWh, or 15.13%, at Rs10.4992 per unit, compared to power from regasified liquefied natural gas (RLNG) totalling 1,153.73 GWh, or 13.71%, at Rs 20.2071 per unit.

Production from mixed sources was 2.18 GWh at a price of Rs 3.2781 per unit; from bagasse 101.09 GWh, at Rs5.9731 per unit; from wind 211.57 GWh; from solar 69.46 GWh, at Rs 2.7773 per unit.

Generation from nuclear sources was 2,284.86 GWh, or 27.15% of the total generation, at Rs 1.0726 per unit. Electricity imported from Iran accounted for 39.85 GWh at Rs 21.5555 per unit.

Data submitted by the CPPA to NEPRA also showed that net electricity delivered to DISCOs in December 2022 was 8,096.88 GWh at Rs 7.1198 per unit, the total price of which was Rs 57,648 million.

The CPPA in its tariff adjustment request advocated that the reference fuel charges for December 2022, for DISCOs were fixed at Rs 9.3193 per unit while the actual fuel charges were recorded at Rs 10.9833 per unit. 

NEPRA, in a public notice, has invited all the interested and affected parties to raise written and oral objections at the public hearing.

Under the law, the regulator may make monthly adjustments in the approved tariff on account of any variations in fuel charges and policy guidelines.