Nepra to rule on tariff hike next week

Regulator reserves ruling over CPPA’s petition for Rs1.37 per unit increase under fuel price adjustment for September

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) on Thursday reserved its judgment for increase in power tariff by Rs 1.37 per unit, following a public hearing on a petition of the Central Power Purchasing Agency (CPPA).

The CPPA seeks the increase of Rs1.37 per unit under fuel price adjustment for the month of September 2020 for ex-Wapda distribution companies (Discos). The Nepra chairman said that the judgment would be announced within seven days.

During the hearing which was presided over by Nepra Vice Chairman Saifullah Chattha, questions were raised over the additional use of furnace oil during September.

National Power Control Centre (NPCC) officials informed Nepra that in September plants had received less gas, therefore, furnace oil was used under compulsion. In September 5% less gas was provided to the power plants, they added.

Nepra Chairman Tauseef H Farooqi said that they thought that additional furnace oil worth Rs5 billion was used during September. “We have to take care of the consumers’ interest too,” Farooqi added. It was informed that the proposed increase in tariff would have an impact of Rs17.4 billion.

The CPPA petition had been filed on behalf of ex-Wapda Discos. The CPPA said in its petition that it had charged consumers a reference fuel tariff of Rs2.8410 per unit in September while the actual fuel cost turned out to be higher. Hence, it should be allowed to charge Rs1.3697 per unit additional cost from consumers next month.

According to the data provided to Nepra, the energy generation in September was recorded at 13,103.80 GWh. The total cost of energy generated amounted to Rs53.91 billion. The total electricity sold to Discos was 127,22.97 GWh for Rs 53.560 billion. The total transmission losses during September were to 2.91%.

The hydropower generation contributed the highest share of 37.18% or 4,871.96 GWh to the overall power generation during September. Coal-based power plants contributed 17.42% or 2,282.85 GWh. The cost of the coal-based electricity cost Rs6.0262 per unit.

In September 71.70 GWh expensive electricity from high-speed diesel was generated at Rs18.7347 per unit. The electricity imported from Iran contributed 0.36% or 46.66 Gwh at a cost of Rs10.1504 per unit. Mixed energy contributed 0.09% or 11.90 Gwh at a cost of Rs 6.4751 per unit.