Islamabad    -     National Electric Power Regulatory Authority (NEPRA) has Wednesday allowed ex-Wapda Discos to transfer the burden of Rs22.6 billion to the power consumers on the account of fuel price adjustment for the month of August 2019.

In a notification issued here NEPRA has allowed an increase of Rs 1.6615 to ex-Wapda Discos on the account of fuel price adjustment for the month of August 2019. In a public hearing held on October 02, 2019 NEPRA had allowed an increase for the month of August and now it has been notified.

In its petition for August, the CPPA had sought a tariff increase of Rs1.8672 per unit due to a hike in fuel prices. In its petition the CPPA pleaded that the actual pool fuel cost for the month of August 2019 was Rs5.0717/kWh, against the reference fuel cost component of Rs3.2045/kWh. The CCPA-G requested that it should be allowed to increase the rate by Rs1.8672 per unit. However Nepra has approved an increase of Rs1.66 per unit in the electricity tariff for power distribution companies.

The decision will have an impact of an additional Rs 22.6 billion on the electricity consumers and will be transferred in upcoming month bills. The adjustment shall be applicable to all the consumer categories except lifeline consumers of all the X-DISCOs.

The Authority noted that costlier energy of around 505 GWh at Rs.12.511 per unit had been generated from furnace oil based power plants, whereas, efficient coal a based power plants like Engro Power Gen Thar, Port Qasim and Sahiwal Coal have not been fully utilized. The Authority observed that had the energy generated from costlier RFO based plants been generated from efficient power plants, it would have resulted in lower FCA for the month, said the notification.

The Authority noted that although NPCC/NTDC submitted Plant wise hourly despatch data of the Generation, however, the stand alone despatch data is of no use unless supported by detailed financial analysis showing financial impact of non-utilization of efficient power plants. Upon inquiry, CPPA-G submitted that to carry out the required analysis, some additional information/details have been requested from NPCC/NTDC and once the same is received, the analysis will be provided for consideration of the Authority.

Regarding adjustment on account of Fuel differential of Rs275.82 million for Balloki for the month of May 2019 and Rs326.14 million for QATPL for the month of June 2019, CPPA-G has provided it working, said the notification. However, the same has been verified as Rs40.89 million and Rs301.96 million for Balloki & QATPL respectively and included in the Fuel cost for the Month of August 2019.The remaining previous adjustments/ supplemental charges of Rs386.44 million are allowed in the FCA of August 2019.