Another Rs2.94/unit hike in power tariff under FCA on the cards

CPPA submits Discos’ request to NEPRA to jack up tariff under Fuel Charges Adjustment of March

ISLAMABAD: Power consumers are likely to bear an additional financial burden of Rs 2.94 per unit hike on account of Fuel Charges Adjustment (FCA) for electricity consumed in March 2024.

Central Power Purchasing Agency (CPPA) has submitted an application to the National Electric Power Regulatory Authority (NEPRA) on the request of distribution companies (DISCOs) to increase the electricity price by Rs 2.9402 per kilowatt hour (kWh) under the head Fuel Charges Adjustment (FCA) of March 2024.

Following this request, the NEPRA has called a public hearing on April 26, 2024. If approved, this adjustment will be billed from consumers in May bills. 

The NEPRA has invited all the parties to raise objections as permissible under the law at the public hearing.

The CPPA, in its application, has claimed that the total electricity generated with various fuels in March 2024 was recorded a 8,023 GWh, at Rs 8.3109 per unit. The total cost of energy was Rs 66,680 million.

The power generation with the hydel source was 2,217 GWh (gigawatt per hour) constituting 27.63 percent with zero cost of power generation while power production with coal-fired power plants was 862 GWh (local coal) and the total power generated for Rs 14,459 million (Rs 16.7779/unit).

Similarly, the power generation from gas-based power plants was 795 GWh, 9.91 percent of the total generation, totaling Rs13.6857 per unit and the generation from Re-gasified Liquefied Natural Gas (RLNG) was 1,658 GWh, which was 20.67 percent of total generation, at Rs 22.1917 per unit.

Likewise, power production from bagasse was recorded at 78 GWh, the price of which has been calculated at Rs 5.9822 per unit. The electricity generated from wind was recorded at 205 GWh, 2.55 per cent of total generation and solar at 110 GWh, 1.37 per cent of the total generation in March 2024.

Moreover, electricity generation from nuclear sources was 2,070 GWh which came out at Rs 1.5488 per unit, 25.79 per cent of the total generation, and electricity imported from Iran was 28 GWh amounted to Rs 30.3729 per unit, 0.35 per cent of the total power generation in the said month of March 2024.

It is also learnt from the data submitted by the CCPA with NEPRA that net electricity delivered to DISCOs in March 2024 was 7,756 GWh (96.67pc) at a rate of Rs 9.3819 per unit, the total price of which was Rs 72,764 million.

On Tuesday, Power Division, in a press statement, hinted at a reduction in power tariff on account of FCA for March 2024. It also claimed that as a result of the government’s efforts, the request for the reduction in electricity bills has been submitted to NEPRA for the third consecutive month. 

The electricity bills for March were brought down from Rs 7.6/unit to Rs 4.92 per unit, it added.

It should be noted that in the February adjustment, NEPRA had increased the price of electricity by Rs 4.92 per unit, while in the January fuel price adjustment, the price of electricity was increased by Rs. 7.6 per unit.

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

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