CPPA seeks Rs6.1/unit electricity tariff raise

ISLAMABAD - The Central Power Purchasing Agency (CPPA) has sought an increase of Rs6.1 per unit on account of fuel charges adjustment (FCA) as per unit cost of electricity has surpassed Rs12.6 per unit during the month of January 2022.

The CCPA has requested National Electric Power Regulatory Authority (NEPRA) to enhance the electricity price by Rs6.1 per unit on the account of FCA for the previous month (January). The NEPRA would hear the petition on February 28. The request is for all consumer categories of distribution companies, except for lifeline and K-Electric consumers. It would have the impact of Rs60 billion including General Sales Tax (GST) if NEPRA approves this hike.

The NEPRA is continuously approving the electricity tariffs under FCA. Following a massive increase of Rs 4.75/unit and Rs 4.30/unit from NEPRA, on account of monthly FCA, respectively for October and November, the regulator in the last week had allowed DISCOs to increase the tariff by Rs 3.10/unit for December FCA as well. Now, the CCPA has requested NEPRA to allow Rs6.1 per unit increase on account of FCA for January. The CCPA has cited following reasons for higher electricity tariff under FCA including high speed diesel got expensive by Rs25.98 per unit, furnace oil price increased by Rs22.8 per unit, LNG increase by Rs16.7 per unit and coal increased by Rs14.10 per unit, the application added. In the petition the total energy generated during January was 8420.73 GWh at a basket price of Rs6.5124 per unit.

In the month of January 5.83% electricity was produced from water, 33.15% from coal, 6.73% from High Speed Diesel, 14.07% from RFO, 7.12 % from imported LNG and 14.37% from nuclear power.

Raise is for all consumer categories of GENCOs except for lifeline and K-Electric consumers

According to the data submitted to Nepra, in January 2022, the hydel generation was recorded at 512.94 GWh or 5.83 percent of the overall electricity production. Coal-fired power plant contributed 2916.7 GWh or 33.15 percent of total generation at a rate of Rs14.105 per unit, HSD contributed 592.08 GWh or 6.73 percent at Rs 25.9801 per unit. RFO based generation was 1,238.11 GWh or 14.07 per cent at Rs 22.8074 per unit.

Electricity generation from gas-based power plants was 1,264.36 GWh or 14.37 percent at Rs7.7471 per unit, RLNG contributed 626.08 GWh or 7.12 percent at Rs 16.7034 per unit.

The generation from nuclear power plants was 1264.57 GWh or 14.37 per cent at Rs1.0756 per unit and electricity imported from Iran was 31.65 GWh at Rs 15.0073 per unit. The power generation from baggasse was recorded at 107.13 GWh at Rs 5.9822 per unit. The power generation from different sources (mixed) was 2.3 GWh at a price of Rs 6.29 per unit, while generation from wind was recorded at 194.88 GWh or 2.22 percent and solar generation was 46.58 GWh or 0.53 percent.

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