Islamabad-National Electric Power Regulatory Authority (NEPRA) has reserved its judgment on the Central Power Purchasing Agency (CPPA) petition for increase of Rs0.86 per unit in power tariff, under fuel price adjustment, for the month of July. 

In a public hearing conducted by Nepra, the regulator has indicated allowing CPPA to increase the power tariff by around Rs0.84 per unit, however later the regulator has issued a statement saying that it has reserved its judgment in the matter. According the Nepra’s spokesman, the Authority conducted a public hearing on Fuel Price Adjustment for the month of July 2020 in the matter of X-Wapda DISCOs on 1“ September, 2020. The Authority after hearing the arguments of stakeholders has reserved its judgment in the matter. The decision will be issued after carrying out analysis with regard to the statements made by National Power Control Center (NPCC) during the course of hearing. Hence, no decision of the Authority on the subject matter has been made. Earlier during hearing, the regulator noted that expensive electricity was generated from HSD and Furnace Oil during July. The Nepra case officer said that efficient generation plants producing cheap electricity were not fully utilised during July. In case the efficient plants would have been operated, it could help reducing Furnace Oil use by 43 per cent.

Official of the National Power Control Centre (NPCC) rejected the claim of using 43 per cent more Furnace Oil (FO), saying that the merit order of Furnace Oil starts when the power generation goes beyond 19000 MW. In case of avoiding use of FO and HSD they would have to resort to 8 to 10 hours load shedding. In its petition Central Power Purchasing Agency (CPPA) had proposed an increase of Rs0.86 per unit, under fuel price adjustment, for the month of July 2020 for Ex-Wapda Discos. The CPPA claimed an additional cost of Rs0.8615 per unit under base tariff 2015-16. The CPPA in its petition said, it had charged consumers a reference fuel tariff of Rs3.542 per unit in July while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs0.8615 per unit additional cost from consumers next month.

 According to the data provided to Nepra the energy generation in July 2020 was recorded at 42928 GWh. The total cost of energy generated amounted to Rs63.150 billion. The total electricity sold to Discos was 44035 GWh for Rs63.560 billion. The total transmission losses during July were around 1.88 per cent. The hydropower generation contributed the highest share of 36.76 per cent or 5406.99 GWh to the overall power generation during July. Coal based power plants contributed 17.55 per cent or 2581.16 GWh. The cost of the coal based electricity was Rs6.3039 per unit. In July 113.09 GWh expensive electricity from High Speed Diesel was generated at Rs18.483 per unit. From furnace oil 5.84 per cent or 859.81 GWH electricity was generated and the cost the electricity was Rs13.9013 per unit. RLNG based power generation contributed 20.62 per cent or 3032.69 GWh which was Rs 6.8534 per unit. Nuclear energy contributed 4.86 per cent or 715.53 GWh electricity at the cost of Rs 0.9617 per unit. The indigenous gas in electricity production was 10.05 per cent or 1478.55 GWh and the cost was Rs7.0172 per unit. The share of wind power plants was 2.34 per cent or 344.46 GWh and solar contributed 0.43 per cent or 63.23 GWh to the system.