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HomeNationalNEPRA allows Rs11.37 increment per unit, costing consumers additional Rs155bn

NEPRA allows Rs11.37 increment per unit, costing consumers additional Rs155bn

National Electric Power Regulatory Authority (NEPRA) has allowed the K-Electric and other ex-Wapda distribution companies (XW-DISCOs) to increase up to Rs11.37 per unit for higher fuel generation costs in June in power tariff for the month of August which would cost the citizens an additional Rs155 billion.

NEPRA allowed the fuel cost adjustment for K-Electric at Rs11.37 per unit and for electricity distribution companies previously owned by Wapda [Discos] at Rs9.89 per unit. All the electricity consumers with more than 50 units would be charged for these electricity rates.

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Earlier, the government announced an Rs7.91 per unit increase in average base tariff in three phases starting from July. Approval of Rs1.55 per unit was also approved in base tariff country-wide under quarterly adjustment.

The power regulatory authority had held public hearings under the chairmanship of Tauseef H Farooqi. After deliberation on the submitted data, K-Electric was allowed an increase of Rs11.37 per unit whereas other distribution companies were allowed to collect Rs9.89 per unit for power consumers in the month of August.

The Central Power Purchasing Agency (CPPA) had filed a petition on behalf of Discos for Rs9.91 per unit additional monthly FCA in June to generate about Rs133 billion for August. The additional FCA is 166 percent higher than the reference fuel cost for June.

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Upon the request of K-Electric for additional FCA for June with Rs22.25 billion additional revenue input against the higher cost of liquefied natural gas (LNG) at 50 percent and power purchase from CCPA at 74 percent; therefore NEPRA allowed it an additional FCA of Rs11.37 per unit.

According to the CCPA, Discos charged a reference fuel cost of Rs5.93 per unit in June against the actual cost at Rs15.84 Rs9.91 per unit or 166 percent would be charged to consumers.

The share of domestic fuel price in power generation was lower. The share of hydropower supply stood almost unchanged. The share of nuclear power dropped to nine percent in June. The share of RLNG power plants was higher than 23 percent in May. The share of domestic gas increased up to 11 percent. The share of coal-based power plants remained almost unchanged whereas three renewable energy sources – wind, solar and bagasse – contributed seven percent against 6.5 percent in May.

The most expensive power generation came from furnace oil-based plants at Rs36.2 per unit in June against Rs33.67 in May, Rs28.2 in April and Rs22.52 in March.

According to CCPA total of 13,876-gigawatt hours (GWh) were generated at a cost of Rs204 billion in June. The net units that were delivered to Discos were at 13,741 GWh at Rs214 billion costs.

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