Islamabad - National Electric Power Regulatory Authority (NEPRA) has Tuesday allowed an increase of Rs1.8266 per unit in power tariff for Ex-WAPDA Discos on account of fuel cost adjustment for the month of September.

During a public hearing, presided over by Chairman NEPRA, Tauseef H Farooqi, on the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the Discos, NEPRA has worked out an increase of Rs2.37 per unit against the demanded Rs2.97 per unit. However, the authority allowed Discos to transfer only Rs1.826 per unit to the consumers and linked the hike of Rs0.5463 per unit with the provision of Merit order/justification of use of Furnace oil for the Month of September.

The total impact of Rs1.826 per unit increase on the consumer will be Rs24 billion. An amount of Rs7.2 billion or Rs0.5463 per unit on account of over utilisation of RFO has been deducted. Upon provision of satisfactory data/ justification to the Authority within 15 days, the same would be decided accordingly. The said adjustment would be passed on to the consumer in the billing month of December. The tariff adjustment will, however, not be applicable to lifeline consumers who consume up to 50 units a month and K-Electric consumers.

Total energy from all sources remained at 13,621.35 Gwh in September

It is worth mentioning that on October 30, Nepra had deferred its decision on the petition of Central Power Purchasing Agency (CPPA) for Rs2.97 per unit hike in power tariff and directed the petitioner to provide justification for generating expensive electricity from furnace oil.

The regulator had noted that expensive electricity was generated by using furnace oil and deferred its decision on the fuel price adjustment. The regulator had asked the petitioner to provide the generation data on the next hearing schedule on November 5 but no data was provided. The regulator noted that by using expensive fuel (furnace oil) the exchequer was burdened with additional Rs7.2 billion which translates into Rs0.5463 per unit. Therefore decision regarding Rs0.5463 per unit increase was put on hold and asked the NPCC/ CPPA-G to provide the data within 15 days. During hearing chairman Nepra questioned that why electricity had not been generated from cheaper power plants. “If we transfer the entire raise to the consumers it will be burden on our conscience,” Mr Farooqi remarked. The Chairman NEPRA had further questioned that what were the compulsions behind the use of expensive furnace oil for power generation.

In its petition the Central Power Purchasing Agency (CPPA) had proposed an increase of Rs2.97 per unit, under fuel price adjustment, for the month of September for Ex-Wapda DISCOs.

According to the petition, submitted by CPPA with NEPRA, total energy generated in September was 13621 Gwh at a total price of Rs70.231 billion which is Rs5.1560 per kWh. The net electricity delivered to power distribution companies was 13225.35 Gwh at cost of Rs76.886 billion or 5.8136 per kWh. Out of total electricity generation, losses stood at 2.91 per cent.

Since the actual cost of generation was Rs5.8136 per unit in the period under review against reference price of Rs2.8410 per unit therefore it has requested an increase of Rs2.9726 per unit.

According to the data provided to NEPRA, the share of hydropower generation was 5052.84 GWhs or 37.09 percent in September. The share of hydropower was 40.33 percent in August. As per the data 2232.44 GWh or 16.39 percent electricity was generated from coal at the cost of Rs 5.3770 per unit in September. In August the share of coal based electricity was 1873.91 GWh or 13.34 percent.

It was informed that around 817.24 GWh or 6 percent electricity was generated from furnace oil. The cost of RFO based electricity was Rs 16.5614 per unit. In August around 505.92 GWh or 3.60 percent electricity was generated from furnace oil at the cost of Rs12.5112 per unit. In September no electricity was generated from high speed diesel.

In September the energy generated from RLNG was decreased to 2868.46 GWh or 21.06 percent of total generation. The cost of RLNG based electricity was Rs 11.1186 per unit. In August the energy generated from RLNG was 3216.04 GWh or 22.89 percent of total generation.

The total generation from local gas-based electricity was 1614.71 GWh or 11.85 percent and the cost was Rs7.0286 per unit.

The generation from nuclear was 749.28 GWh or 5.5 percent and the cost of generation was 0.9442 per unit.

From Iran 49.97 GWh or 0.37 percent electricity was imported at the cost of Rs 11.5709 per unit. From Wind and Solar 149.69 GWh and 61.61 GWh electricity was generated respectively.

From Baggasse 15.11 GWh or 0.11 percent electricity was generated at the cost of Rs 6.2089 per unit. From mixed sources 10.01 GWh or 0.07 percent electricity was generated at the cost of Rs6.7819 per unit.