ISLAMABAD                    -              The National Power Regulatory Authority (NEPRA) has deferred its hearing on the petition of the Central Power Purchasing Agency (CPPA) for power tariff increase, under fuel price adjustment for the month of November, for ex-Wapda DISCOs as the later has withdrew its petition.

During a public hearing by NEPRA on Central Power Purchasing Agency (CPPA) request for power tariff increase by Rs 0.9836, CPPA has requested the regulator not to proceed with hearing as it is working on the draft to change the mechanism for fuel price adjustment(FPA).Apparently the hearing was deferred on the request of the CPPA for making changes to the FPA mechanism but actually it is part of the government plan to keep the electricity prices unchanged for next 18 months, official source told The Nation. The source said that Pakistan has also informed the visiting IMF team about its decision of not increasing power tariff for the power consumers. Legally the government cannot issue directive to NEPRA to keep the prices unchanged but indirectly it will undertake efforts to keep the prices unchanged, the source said.

The hearing which was presided over by Chairman NEPRA was informed by Chief Executive Officer (CEO) CPPA, Abid Lodhi that in a public interest they are working to change the mechanism of fuel price adjustment and the draft in this regard is getting ready. Therefore the Regulator was requested to stop the proceeding till the draft is changed. The CEO further said that it is wrong to say that the CPPA is facing financial crises and the delay was asked to change the FPA adjustment mechanism.

For the month of November CPPA-G has requested for Rs 0.9836 per unit increase. The petition for tariff increase for November has been filed by CPPA on behalf of ex-Wapda distribution companies (Discos) to generate about Rs 8 billion in additional revenue to Discos. The CPPA claimed an additional cost of Rs 0.9836 per unit under base tariff 2015-16.

The CPPA in its petition said it had charged consumers a reference fuel tariff of Rs2.449 per unit in November while the actual fuel cost turned out to be Rs3.4713 per unit. Hence, it should be allowed to charge Rs 0.9836 per unit additional cost from consumers next month. According to the data provided to NEPRA the energy generation in November 2019 was recorded at 7,434 GWh. The total cost of energy generated amounted to Rs24.86 billion, having an average per unit fuel cost of Rs3.344 per unit. About 7,204 GWh were sold to the Discos for Rs25.01 billion at Rs 3.4713 per unit. The total transmission losses during November were around 3.1 percent.

The hydropower generation contributed the highest share of 39 percent or 2900.01 GWh to the overall power generation. Coal based power plants contributed 27.3 percent or 2030.23 GWh. The cost of the coal based electricity was Rs 5.7882 per unit.

RLNG based power generation decreased to 9.2 percent from 22.89 percent in August. RLNG has contributed 694.55 GWh in November at Rs 10.0563 per unit.

Nuclear energy contributed 11.55 percent or 858.43 GWh electricity at the cost of 1.01 per unit. The indigenous gas in electricity production was 9.34 percent and contributed 694.55 GWh at the cost of Rs 6.86 per unit. The share of wind power plants also dropped to just 2pc.

There was no power intake from power plants based on high speed diesel. The electricity imported from Iran contributed 0.48 percent or 35.57 GWh at a cost of Rs11.57 per unit. Mixed energy contributed 0.19 percent or 14.16 GWh at the cost of Rs 6.5603 per unit. Baggasse contributed 0.23 percent or 17.43 GWh at Rs 5.45 per unit. Wind contributed 2.04 percent or 151.82 GWh and solar contributed 0.66 percent or 49.18 GWh to the system.