ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved a reduction of Rs 1.28 per unit on account of Fuel Charges Adjustment (FCA) for the month of September 2024.
This decision brings relief to consumers by decreasing their power bills, following the monthly FCA adjustment that aligns with fluctuations in fuel prices.
NEPRA, in a statement, said that Central Power Purchasing Agency (CPPA had submitted a request for reduction of 71 paise per unit on account of fuel charges adjustment for the month of September. However, after reviewing the data and holding a public hearing on October 30, 2024, NEPRA approved a greater reduction of Rs 1.28 per unit.
Earlier, the August fuel charges adjustment was charged with a reduction of 86 paise per unit, NEPRA said, adding that consumers will be charged 42 paisa less per unit for September FCA as compared to August.
The Authority (NEPRA), after incorporating the aforementioned adjustments, has reviewed and assessed a National Average Uniform decrease of (Rs.1.2754/kWh) in the applicable tariff for DISCOs on account of variations in the fuel charges for September 2024.
NEPRA, in its statement, also said that in the previous month, the FCA for August had been reduced by 86 paisa per unit. The latest adjustment for September is even more favorable, with consumers charged 42 paisa less per unit than in August.
The monthly FCA is an ongoing mechanism that adjusts electricity prices based on the fuel costs incurred by power producers. In months where fuel prices drop, consumers benefit from reduced rates, and conversely, when fuel costs rise, the burden is reflected in their electricity bills.
According to NEPRA, the September FCA reduction shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, Electric Vehicle Charging Stations (EVCS), Prepaid electricity consumers of all categories who opted for pre-paid tariff and agriculture. DISCOs should reflect the fuel charges adjustment in respect of September 2024 in the billing month of November 2024.
While effecting the Fuel Adjustment Charges, the concerned DISCOs shall keep in view and strictly comply with the orders of the courts notwithstanding this order, said NEPRA.
NEPRA, in its decision, also clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.
In its application, the CPPA requested NEPRA’s approval to reduce the electricity price by Rs 0.7057 per kilowatt-hour (kWh) under the Fuel Charges Adjustment (FCA) for September 2024. A subsequent public hearing has been scheduled for October 30, 2024, to further assess the proposed adjustment and its implications for the power sector.
According to the application filed by CPPA, the total electricity generated in September 2024 was recorded at 12,487 GWh (gigawatt hours) at an average cost of Rs 8.3380 per unit, amounting to a total energy cost of Rs 104,114 million.
Of the total electricity generated, hydropower contributed the largest share with 4,838 GWh, accounting for 38.75 percent of the generation at zero cost. Coal-fired local and imported power plants generated 2,410 GWh, costing Rs 12.2882 per unit for local coal and Rs 16.5990 per unit for imported coal. The total cost for coal-based generation was Rs 34,569 million.
Power generation from gas-based plants amounted to 988 GWh, representing 7.91 percent of the total generation at Rs 13.6768 per unit. In comparison, power produced from Re-gasified Liquefied Natural Gas (RLNG) contributed 2,039 GWh, or 16.33 percent, at Rs 24.9570 per unit.
Other notable sources of energy included nuclear power, which generated 1,596 GWh (12.78 percent) at the lowest cost of Rs 1.5417 per unit, and electricity imported from Iran, which amounted to 40 GWh at a significantly higher cost of Rs 25.9519 per unit.
Renewable energy sources also played a role, with wind power contributing 395 GWh (3.17 percent), solar 105 GWh (0.84 percent), and bagasse 36 GWh at Rs 12.4788 per unit.
The CPPA’s data indicated that a total of 12,118 GWh of electricity was delivered to DISCOs in September 2024, at a rate of Rs 9.0949 per unit, with a total cost of Rs 110,216 million.
