NEPRA approves power tariff raise by Rs3.99/unit

ISLAMABAD - NEPRA has approved an increase of Rs 3.9923/unit in tariff EX-Wapda Distribution Companies (Discos) on account of monthly fuel charges adjustment (FCA) for April 2022.

In a public hearing on Central Power Purchasing Agency Guarantee Limited (CPPA-G) petition, Chairman NEPRA Tauseef. H. Farooqi said that up to 18 hours loadshedding is being carried in various parts of the country. He said that for NEPRA consumer is important who is being provided electricity based on expensive fuel.

Vice Chairman Rafiq Shaikh pointed out that cheaper power plants are closed due to unavailability of fuel

The Chairman NEPRA asked the officials to find a solution to the problem.

An official of the National Power Control Centre informed NEPRA that generation was 19700MW against the demand of 21300mw. There is total shortage of 1600MW, the official informed.

On the CPPA-Petition, the regulator calculated that the increase on account of FCA will be Rs 3.9923/unit against the CPPA-G demanded Rs 4.0554/unit.

In a petition submitted to NEPRA, on behalf of power distribution companies (XWDISOCs), the CPPA-G said that for the month of April the reference fuel charges from the consumers were Rs 6.6087/unit while the actual fuel cost was Rs10.6641/unit. Therefore, it should be allowed to pass the increase of Rs 4.0554/unit to the consumers.

During the hearing NEPRA’s official informed that as per data submitted by National Power Control Centre, against the demand of 690MMCFD during April, an average RLNG allocated to the power sector was 552 MMCFD.

The official said that indicative financial impact due to RLNG shortage was Rs 2.379 billion. It was further informed that China Power Hub/Hubco was underutilized to avoid transmission line overloading on certain instances. The financial impact due to system constraints was Rs 578 million.

The official said that financial impact of underutilization of available RLNG on power plants during April was Rs 2 million. The total financial impact of unavailability of RLNG, system constraints and underutilization of available RLNG was Rs 2.959 billion.

The regulator adjusted Rs 0.063/unit for various adjustments. On account of adjustments by tariff Rs 91.8 million or Rs 0.0073/unit, by M&E adjustments Rs 580 million or Rs 0.04618/unit and by technical-energy losses adjustments Rs 0.0096/unit have been deducted.

As per the initial analysis of data NEPRA has calculated the FCA for the month of April will be around Rs 3.9923/unit. The regulator has reserved the judgment and will announce it later.

According the CPPA-G petition the total energy generated during April increased to 12,960.41 Gigawatt hours (GWh) from 10,418 GWh in March. The total generation cost in April was Rs 132.746 billion. The generation cost of per unit energy was Rs10.6641/unit. According to the CCPA-G data, net electricity delivered to DISCOs was 12,556.37 GWh at the cost of Rs133.903bn or Rs10.6641/unit.

The hydel power generation increased to 2404.35 GWh in April from 1,703.91 GWh in March and its share was 18.55pc in national energy mix. The share of coal in power generation decreased to 2,168.93 GWh in April from 2,586.62GWh in March. Its share also reduced from 24.83pc in March to 16.74pc in APril. The cost of coal generation was increased from Rs12.4116/unit in March to Rs14.3362/unit in April.

From High Speed Diesel 58.49 GWh electricity was generated at the cost of Rs 27.7352/unit.

The electricity generated from furnace oil during April increased to 1,564.11 GWh in April from 1,106.19 GWh in March. Its share in national energy mix increased from 10.65 percent in March to 12.07pc in April. The generation cost of the RFO was the highest among all the fuel and it enhanced from from Rs22.5214/unit in March to Rs 28.1909/unit.

The electricity generation from gas-based power plants in April increased to 1,276.57 GWh in April from 992.72 GWh in the previous month. The cost of the gas-based electricity also increased from Rs7.7872/unit in March to Rs8.3873/unit. RLNG based generation had further increased to 2,516.85 GWh in April from 1,965.68 GWh in March. The cost of the RNLNG based electricity increased from Rs14.3677/unit in March to Rs16.4301/unit.

The generation from nuclear power plants also enhanced in April to 2,251.19 GWh from 1,563.66 GWh in March. The cost of Nuclear based energy was Rs1.0137/unit. Electricity imported from Iran was 51.95 GWh in April at Rs17.6320/unit.

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