Power consumers likely to pay additional Rs2 per unit in Oct

The National Electric Power Regulatory Authority (Nepra) is likely to allow the power distribution companies (discos) to collect additional Rs2/unit from the consumers in their billing month for October.

The regulator held a public hearing on Thursday here on the CPPA’s petition. The CPPA on behalf of the power distribution companies said in August the reference fuel charges from the consumers were Rs4.7334/unit while the actual fuel cost was Rs6.8053/unit; therefore, it should be allowed to pass the increase of Rs2.0718 on to the consumers under the fuel charges adjustment for August 2021.

Chairman Nepra Taseef H. Farooqi headed the proceedings and questioned why the power plants with low efficiency rates were operated in August. The regulator also asked the petitioner as to why Rs10 billion extra was spent on power generation from furnace oil in August.

The hearing was informed that the power plants received 300 mmcfd less gas than the demand, which led to running the expensive plants. The Nepra chairman said the regulator would not put burden of those power plants that were operated on expensive fuel. Why doesn’t the CPPA provide us with the data we ask for?” he asked.

The authority noted that they can allow an increase of Rs1.95 to Rs2 per unit in tariff. The Nepra decision will burden the consumers with additional Rs30 billion to Rs35 billion (in tariff/taxes).

As per the data submitted by CPPA-G, the total energy generated during August was 16078.09GWh at the basket price of Rs6.4122 per unit. The total cost of electricity was Rs103.097b.

According to the CCPA-G data, net electricity delivered to the discos was 15,590.87GWh with the total price of Rs106.100 billion at a rate of Rs6.8053 per unit. The CPPA-G in its tariff petition said since the reference fuel charges for August 2021 were estimated at Rs4.7334 per unit whereas the actual fuel charges were Rs6.8053 per unit, hence it was pleaded to allow an increase of Rs2.0719 per unit.

According to the data submitted to Nepra, in August 2021, hydel generation was recorded at 5594.30GWh or 34.79 percent. In July, the hydel generation was 4,694.67GWh or 29.94 per cent of total generation.

The coal-fired power plants contributed 2293.83GWh or 14.27 percent of total generation at a rate of Rs9.0322 per unit and HSD contributed 19.84GWh or 0.12 percent at Rs22.6251 per unit. The RFO based generation was 1,627.56GWh or 10.12 per cent at Rs18.2403 per unit.

Electricity generation from gas-based power plants was 1,313.21GWh or 8.17 percent at Rs8.3082 per unit and the RLNG contributed 2895.92GWh or 18.01 per cent at Rs13.4401 per unit.

Generation from nuclear power plants was 1,630.19GWh or 10.14 per cent at Rs0.9986 per unit and electricity imported from Iran was 45.24GWh at Rs12.3557 per unit. Power generation from bagasse was recorded at 24.06GWh at Rs5.9822 per unit, generation from different sources (mixed) was 16.98GWh at a price of Rs4.6705 per unit, generation from wind was recorded at 549.95GWh or 3.42 percent and solar generation was 67.01GWh or 0.42 per cent.