ISLAMABAD: As protests continue over inflated electricity bills attributed to the higher cost of power, consumers should get ready for another increase of Rs 1.58 per unit in electricity rates on account of fuel adjustment for month of July 2023.
On behalf of power distribution companies (DISCOs), the central power purchasing agency (CPPA) earlier requested an increase of Rs 2.06 per unit that was revised to Rs 1.579 per unit.
NEPRA on Wednesday conducted a public hearing regarding FCA of July 2023 for DISCOs except K-Electric.
During the hearing, it was revealed that the Sahiwal coal plant had been claiming Rs 27 per unit, while NEPRA had set its tariff at Rs 16 per unit.
The CPPA-G officials informed that the management of Sahiwal coal power plant had imported coal at rate of $400 per ton, but it was never used because of possible violation of merit order.
Power regulator officials said that prices of coal had come down to $100 per ton.
The government officials suggested to allow weighted average cost of coal so that the plant could be operated to generate cheaper electricity.
The power regulator regretted that cheaper option of electricity generation was not being utilized whereas the expensive electricity was being generated to burden the consumers.
Further scrutiny revealed that two coal-based power plants had a generation capacity of 3900 MW, yet the dispatches were only 2200 MW, indicating a significant shortfall. NEPRA emphasized that the system could indeed generate cheaper electricity, as originally envisioned, with coal priced at Rs 16 as the base tariff.
The regulatory authority has reserved its judgment on these matters, as stakeholders navigate the intricate web of challenges within the electricity sector.
NEPRA official said that the Sahiwal coal based plants had imported coal when prices were high at $400 per ton.
CPPA-G officials said that Sahiwal coal plant was bound to maintain inventory of 90 days but it had maintained 45-day inventory when it imported coal at $400 per ton.
The power plant can not use the inventory due to higher prices and only solution was that price should be set in weighted average format to clear the inventory.
The power regulator also raised issue of violation of economic merit.
The issue of low demand of electricity by DISCOs was also raised that resulted in higher capacity payments.
The power regulator also noted that DISCOs were not presenting accurate demand of electricity and sought a report from the DISCOs regarding improvement in performance within 15 days.
The authority will hold a hearing after three weeks to assess the performance of the DISCOs while on Wednesday NEPRA only heard the stakeholders, did not take any decision.
The authority will issue its detailed decision after further scrutiny of the data, NEPRA said.
During the course of hearing, NEPRA officials also raised issues of delay in the laying of transmission lines by NTDC that also caused failure in evacuating the electricity.
It was noted that consumers had paid investment cost for stabilizing the grid, while the country was facing issues since 2017 as there was not stability in the grid.
NEPRA also sought report regarding the investment made for grid stability but so far no work was done in this regard.
Power regulator also raised question of falling down 138 towers of NTDC during the last five years.
If you have decided to build your own platform then WeAlwin Technologies is the right choice specializes in developing MLM Software as per your wish and requirements.