ISLAMABAD - Expressing displeasure with the use of furnace oil for electricity production, the National Electric Power Regulatory Authority (Nepra) Wednesday allowed tariff increase of Rs0.41 per unit for ex-Wapda distribution companies on account of fuel price adjustment for the month of October.

Nepra took the decision at a public hearing on the petition filed by Central Power Purchasing Agency (CPPA).

Presiding over the hearing, Nepra Chairman Tariq Sadozai expressed displeasure with use of furnace oil instead of coal and LNG for generation of electricity.

The authority noted that if instead of expensive furnace oil, coal or LNG was used for power generation, the import bill and the generation cost could have been reduced. Chairman NEPRA said that by using LNG and coal, relief could be provided to the consumers and the prices could be reduced by 59 paisa per unit.

He said unavailability of LNG was no excuse. Sadozai directed the CPPA to provide in writing reasons for extensive use of furnace oil-based plants for power generation instead of coal and LNG. The authority also showed concern over the performance of Nandipur power plant.

The CPPA had proposed an increase of Rs0.6429 per unit under fuel price adjustment for October for ex-Wapda DISCOs, however; Nepra allowed only 41 paisa per unit hike in the tariff. This increase has been made as in month of October the cost of fuel was high while power consumers were supplied electricity at low rates, so this adjustment/ increase has been made to recover that amount.

The decision will have a cumulative burden of around Rs3.8 billion on electricity consumers. The tariff increase will not be charged to lifeline consumers using up to 50 units per month and the K-Electric consumers. All other consumers including industrial sector and agriculture tube-wells will have to pay the increase.

According to the petition submitted by CPPA with Nepra, total energy generated in October was 9573.87 GWhs at a total price of Rs52.127 billion which was Rs5.4448 per unit.

According the data shared with Nepra, the share of hydropower generation in October decreased by 45 percent from 4279.50 GWhs in September to 2389.95 GWhs. The CPPA-Guarantee on behalf of Discos also claimed Rs2.97 billion or 31 paisa per unit for the previous adjustment/supplemental charges.

Nepra will conduct public hearing on the CPPA petition on November 14 for increase in consumer tariff for ex-Wapda Discos. In its petition, the CPPA said that it had charged consumers a reference tariff of Rs5.2366 per unit in October while the actual fuel cost turned out to be Rs5.8795 per unit and hence it should be allowed to recover Rs0.6429 per unit additional cost from consumers.

As per the data, the total energy generation from all sources in October 2018 was recorded at 9573.87 GWhs, which was 23.73 percent lower than 12552 GWhs of energy generated in September. The total cost of energy generated in October amounted to Rs52.13 billion. Of this, about 9308.95 GWhs were sold to the Discos at Rs54.73 billion with a transmission loss of 2.77 percent.

The share of hydropower generation in October was decreased by 45 percent from 4279.50 GWhs in September to 2389.95 GWhs in October. The share of hydropower in national energy mix was reduced to 24.96 percent in October from 34 percent.

The share of re-gasified liquefied natural gas (RLNG) was 22.92 percent and per unit cost was Rs9.8604 per unit. Residual Fuel Oil (RFO)-based electricity generation was 7.88 percent in October against 8.1 percent in September. The total cost of RFO-based electricity was Rs14.4292 per unit.

The total generation from local gas-based electricity was 1913.10 GWhs accounting for 19.98 percent of total generation and its cost of electricity was Rs5.3974 per unit. Coal-based generation was increased from 9.1 percent in September to 11.65 percent in October. The total generation cost of coal electricity was Rs3.3820 per unit in October which is much lower than the September cost of Rs6.4850 per unit.

The share of nuclear energy in the national energy mix increased to 9.27 percent in October from 5.43 percent in September. The fuel cost of the nuclear energy was 97.50 paisa per unit. Baggasse-based electricity contributed 0.72 percent at cost of Rs6.21 per unit.

wwThe share of electricity imported from Iran increased from 0.38 percent in September to 0.48 percent in October. The cost of Iranian electricity was Rs11.57 per unit. The share of wind energy decreased from 2.73 percent in September to 0.98 percent in October at zero fuel cost. While 0.51 percent contribution came from solar energy at no cost. Mixed energy also contributed 0.50 percent electricity to national grid at the cost of Rs6.8914 per unit.