The National Electric Power Regulatory Authority (Nepra) is likely to allow power distribution companies the collection of Rs1.37 per unit from consumers in their electricity bills of September 2021 under the monthly fuel cost adjustment (FCA).
Nepra held a public hearing on a petition of the Central Power Purchasing Agency (CPPA) for increase in power tariff under the monthly fuel cost adjustment for July 2021.
During the hearing, Nepra Chairman Tauseef H Farooqi said that for removing the reservations about running power plants, concrete actions had not been taken so far. “And they [distribution companies] are asking for adjustment for the closed power plants. We will not give adjustment for the closed plants.”
Nepra reserved the judgement and would later notify the increase, which would enable the distribution companies to collect Rs21 billion from the power consumers.
CPPA had asked for previous adjustment of Rs1.5 billion. It will have an impact of Rs0.10 per unit. The economic merit order was violated in running the power plants, which put an extra burden of Rs689 million on the consumers.
After increase in LNG prices, the power generation cost increased by Rs9.6 billion.
In its petition, the CPPA sought an increase of Rs1.47 per unit in tariffs of distribution companies for July 2021 under the monthly FCA mechanism.
As per the data submitted by the CPPA, the total energy generated during July was 15,679.72 GWh at a basket price of Rs6.4653 per unit. The total cost of electricity was Rs101.375 billion.
According to the data, net electricity delivered to the distribution companies was 15,219.27 GWh with the total price of Rs102.707 billion at a rate of Rs6.7485 per unit.
The CPPA-G also sought previous adjustment/supplemental charges of Rs1.753 billion against negative use of power of 7.48 GWh. The CPPA-G, in its tariff petition, said that since the reference fuel charges for July 2021 were estimated at Rs5.2798 per unit whereas the actual fuel charges were Rs6.7485 per unit, hence it was pleaded to allow an increase of Rs1.4687 per unit.
According to the data submitted to Nepra, in July 2021, hydel generation was recorded at 4,694.67 GWh or 29.94% of total generation. Coal-fired power plant contributed 2,383.33 GWh or 15.20% of total generation at a rate of Rs8.4101 per unit, HSD contributed 123.5 GWh or 0.79% at Rs19.3422 per unit.
Published in The Express Tribune, September 2nd, 2021.
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