ISLAMABAD-The National Electric Power Regulatory Authority (Nepra) is likely to allow an increase of Rs 1.06 per unit in Power Tariff under fuel price adjustments for October and November.
In a public hearing on CPPA’s petition, the regulator concluded that Rs1.06 per unit increase shall be justified under Fuel Price Adjustments for the months of October and November. For October it has been concluded to allow an increase of Rs0.29 per unit while for November it has calculated Rs0.77 per unit. The decision will allow the Discos to collect Rs8.4 billion from the power consumers.
However, a NEPRA spokesman said that we have calculated this increase which is to be most probably allowed to the DISCOs. We have not decided on it; however, will issue our final decision in a few days. During the hearing, NEPRA expressed serious concern over the use of furnace oil in power plants. The Central Power Purchasing Agency (CPPA) informed during the public hearing that it had deducted around Rs15 billion for FO-based power generation. It also suggested that if the government does not want to run the Furnace-based power generators, then it should take them out of the economic merit order and close them once and for all. On Wednesday, NEPRA held a public hearing on the petition of the Central Power Purchasing Agency (CPPA) that sought upward adjustment for two months (October-November 2020). The agency pleaded that power distribution companies (Discos) may be allowed to charge Rs0.5712/unit extra from consumers for October and another Rs0.9582/unit for November in their next electricity bills, arguing that the cost of generation was high, while it sold the electricity at a lower price to consumers. They sought two-month combine increase of Rs1.5294/unit.
The regulator again expressed concern over the use of furnace oil for power generation. The CPPA informed that we have been deducted around Rs15 billion for FO-based power generation. It also suggested that if the government does not want to run the Furnace-based power generators, then it should take them out of the economic merit order and close them once and for all. The regulator was informed that in October against the demand of 650 MMCFD of gas, 627 MMCFD of gas was supplied to plants. Due to a shortage of LNG, plants were been run on furnace oil. National Transmission and Despatch Company (NTDC) official said that either let running the furnace-based plants or allow power outages in the country. To this, vice chairman NEPRA said that they are not in support of loadshedding as it affects the domestic, commercial and industrial consumers. In its petition, the CPPA had proposed an increase of Rs0.5712 per unit, under fuel price adjustment, for October 2020 for Ex-WAPDA Discos. For November the CPPA has proposed an increase of Rs 0.9582 per unit in the tariff.
For November the CPPA in its petition said, it had charged consumers a reference fuel tariff of Rs 2.4877 per unit in November while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs0.95.82 per unit additional cost from consumers. Earlier for October the CPPA in its petition said, it had charged consumers a reference fuel tariff of Rs3.7579 per unit in October while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs0.5712 per unit additional cost from consumers. According to the data provided to NEPRA by CPPA, the energy generation in October 2020 was recorded at 10242.98 GWh. The total cost of energy generated amounted to Rs42.191 billion. The total electricity sold to Discos was 9972.12 GWh for Rs43.171 billion. The total transmission losses during October were to 2.64 per cent. The petitioner also sought Rs1.458 billion or Rs0.1423 per unit for previous adjustments. According to the data provided to NEPRA by CPPA, the energy generation in November 2020 was recorded at 7479.40 GWh. The total cost of energy generated amounted to Rs 25.595 billion or Rs 3.4221 per unit. The total electricity sold to Discos was 7235.40 GWh for Rs 24.933 billion.
As per the data submitted by the CPPA the share of hydropower generation in November was increased to 39.98 per cent from 37.18 per cent in October. The share of coal-based power plants in the energy mix decreased from 18.70 per cent in October to 14.65 per cent in November. The cost of the coal-based electricity was Rs6.4738 per unit in October while in November it Rs 7.1045 per unit. The Power generated from furnace oil decreased from 154.47 Gwh or 1.51 per cent in October to 27.77 GWh or 0.37 per cent in November. The cost of the electricity generated from RFO also decreased from Rs12.1712 per unit in October to Rs 11.7645 per unit in November.
The share of gas-based electricity also decreased from 1145.33 Gwh or 11.18 per cent in October to 437.04 GWh or 5.84 per cent in November. The cost of the gas-based electricity increased from Rs6.7010 per unit in October to Rs 7.9930 per unit in November. The share of RLNG based power decreased from 2851.04 Gwh or 27.83 per cent in October to 1913.99 GWh or 25.59 per cent in November. Nuclear contributed 714.56 Gwh or 6.98 per cent electricity to the system in October while in November its share was 663.30 GWh or 8.87 per cent. The electricity imported from Iran contributed 0.40 per cent or 40.56 Gwh in October while in November 33.45 GWh or 0.45 per cent in November. The cost of Iranian electricity was Rs10.0161 per unit in October while in November it was Rs 9.7570 per unit. Mixed energy contributed 0.23 per cent or 23.82 Gwh at the cost of Rs6.8712 per unit in October. In November Mixed energy contributed 0.35 per cent or 26.13 Gwh at the cost of Rs 6.9904 per unit.
Solar contributed 0.59 per cent and wind 1.31 per cent electricity to the national grid in October while in November it has contributed 47.02 GWh or 0.63 per cent electricity. Bagasse contributed 0.22 per cent or 22.12 Gwh to the system in October while in November it has added 59.99 GWh or 0.80 per cent electricity.