Nepra likely to allow Discos to charge additional Rs1.37 per unit in Sept bills

ISLAMABAD – The National Electric Power Regulatory Authority (Nepra) is likely to allow power distribution companies (Discos) to collect additional Rs21 billion (Rs1.37 per unit hike) from power consumers in their electricity bills of September 2021 under monthly Fuel Charges Adjustment (FCA). 

NPERA held a public hearing on the petition of the Central Power Purchasing Agency (CPPA) for increase in power tariff under the monthly Fuel Charges Adjustment (FCA) for the month of July 2021.

During the hearing, chairman NEPRA Tauseef H. Farooqi said, “For removing our reservations regarding running the power plants, concrete actions have not been taken so far. And they are asking for adjustment for the closed power plants. We will not give adjustment for the closed plants.” NEPRA has reserved the judgment and will later notify the increase which will enable DISCOs to collect Rs21 billion from power consumers.

CCPA had asked for previous adjustment of Rs1.5 billion. It will have impact of Re0.10/unit. Economic Merit order has been violated in running the power plants which put extra burden of Rs689 million on consumers. After increase in LNG prices, the power generation cost increased by Rs9.6 billion. Chairman NEPRA said that the in July-August due to maintenance, no power outage will be observed. 

In its petition, Central Power Purchasing Agency-Guaranteed (CPPA-G) had sought an increase of Rs1.47 per unit in tariffs of distribution companies (Discos) for July 2021 under monthly FCA mechanism.

As per the data submitted by CPPA-G, the total energy generated during July was 15,679.72 GWh, at a basket price of Rs 6.4653 per unit. The total cost of electricity was Rs 101.375 billion. According to the CCPA-G data, net electricity delivered to Discos was 15,219.27 GWh with the total price of Rs 102.707 billion at a rate of Rs 6.7485 per unit. The CPPA-G also sought previous adjustment/supplemental charges of Rs 1.753 billion against negative use of power of 7.48 GWh. The CPPA-G in its tariff petition said that since the reference fuel charges for July 2021 were estimated at Rs 5.2798 per unit whereas the actual fuel charges were Rs 6.7485 per unit, hence it was pleaded to allow an increase of Rs 1.4687 per unit.

According to the data submitted to Nepra, in July 2021, hydel generation was recorded at 4,694.67 GWh or 29.94 per cent of total generation. Coal-fired power plant contributed 2,383.33 GWh or 15.20 per cent of total generation at a rate of Rs 8.4101 per unit, HSD contributed 123.5 GWh or 0.79 per cent at Rs 19.3422 per unit. RFO based generation was 1,612.34 GWh or 10.28 per cent at Rs 17.0783 per unit.

Electricity generation from gas-based power plants was 1,361.17 GWh or 10.28 percent at Rs 8.1720 per unit, RLNG contributed 3,137.68 GWh or 20.10 per cent at Rs 12.0604 per unit.

The generation from nuclear power plants was 1,659 GWh or 10.59 per cent at Rs 1 per unit and electricity imported from Iran was 40.09 GWh at Rs 11.6663 per unit. The power generation from baggasse recorded at 45.02 GWh at Rs 5.9822 per unit. The power generation from different sources (mixed) was 9.88 GWh at a price of Rs 4.4846 per unit, while generation from energy generated from wind was recorded at 550.37 GWh or 3.51 per cent and solar generation was 61.82 GWh or 0.39 per cent.

Article source: https://nation.com.pk/02-Sep-2021/nepra-likely-to-allow-discos-to-charge-additional-rs1-37-per-unit-in-sept-bills