ISLAMABAD: National Electric Power Regulatory Authority (Nepra) is all set to consider a request of Central Power Purchasing Agency-Guaranteed (CPPA-G) on Tuesday (today) for an increase of Rs3.12 per unit in tariffs of power Distribution Companies (Discos) for December 2021, under monthly Fuel Component Adjustment (FCA) mechanism, as generation from coal generation has overtaken hydel generation in terms of units and cost.
The main reason, according to CPPA-G for the proposed increase in FCA was higher generation from expensive fuels and previous adjustments.
The impact of approved increase will be passed on all categories of consumers of Discos except lifeline consumers. It will also affect KE consumers to the extent of 1100-1300MW being purchased from national grid.
According to the data submitted to Nepra, in December 2021, hydel generation reduced to 1,769 Gwh due to annual canal closure from 2,816.49 GWh in November 2021, constituting 20.04 percent as compared to 33.21 percent of total generation in the entire month of November. Nepra team has not mentioned average cost of hydel generation despite the fact that the Authority has repeatedly directed it to include it in the FCA figures.
Power generation from coal-fired power plants was 2,104 Gwh in December against 1,379 GWh in November showing almost 53 percent increase in the entire month. This also shows that coal generation was 23.83 percent of total generation in December 2021 as compared to 16.26 percent of November. The price of coal generation was Rs 13.3122 per unit in December 2021.
Generation from HSD was recorded at 251 GWh (2.84 percent) at Rs14.0862 per unit. Generation from RFO was 353 GWh (4 percent of total generation) at Rs 22.2446 per unit.
Electricity generation from gas-based power plants was 1,216 GWh (13.77 percent) at Rs 7.7489 per unit. Generation from RLNG was 1,192 GWh (13.54 percent of total generation) at Rs 17.8066 per unit.
Electricity generation from nuclear sources was 1,549 GWh at Rs 1.0598 per unit (17.55 percent of total generation), and electricity imported from Iran was 36 GWh at Rs 13.2683 per unit.
Power generation from different sources (mixed) was 8 GWh at a price of Rs 4.4881 per unit, generation from baggasse recorded at 95 GWh price calculated at Rs5.9822 per unit.
The energy generated from wind was recorded at 210 GWh, 2.38 percent of total generation and solar at 45 GWh, 0.51 percent of total generation in December 2021.
The total energy generated recorded at 8,827.05 GWh, at a basket price of Rs 8.2430 per unit. The total cost of energy was Rs 72.761 billion.
CPPA-G also sought previous adjustment/supplemental charges of over Rs 2.052 billion. The sale to IPPs was also reduced by 30.58 GWh, the price of which was Rs 967.20 million (Paisa31.6258 per unit) while the reduction in transmission losses was recorded at 266.56 GWh.
According to the CCPA-G data, net electricity delivered to Discos in December 2021 was 8,529.91 GWh at a rate of Rs 8.6573 per unit, total price of which was Rs 73.846 billion.
CPPA-G in its tariff petition maintains that since the reference fuel charges for December 2021 were estimated at Rs 5.5347 per unit whereas the actual fuel charges were Rs 8.6573 per unit including supplemental charges of Rs 2.052 billion, hence an increase of Rs 3.1226 per unit has been sought for the for December 2021 under FCA mechanism.