Rs6.10 power tariff hike on the cards

CCPA-G requests power regulator to increase rate on account of Jan’s FCA

ISLAMABAD:

Power tariff is likely to increase by Rs6.10 per unit on account of fuel cost adjustment (FCA) for the month of January this year as the National Electric Power Regulatory Authority (Nepra) will hear an application filed by the Central Power Purchasing Agency (CPPA-G) on February 28.

In its application, the CCPA-G has stated that in the month of January, 33.15% of the total electricity was generated from coal and 5.83% through hydropower stations.

The share of diesel stood at 6.73% while furnace oil contributed 14.07%. Local gas was used to generate 14.37% of the electricity and LNG for 7.12%. Nuclear fuel accounted for 14.37% of the total production, wind 2.22% and bagasse 1.22%.

Electricity imported from Iran made up 0.36% and the contribution of solar power was 0.53%. The total electricity produced in the month stood at 8,797 Gigawatt (GWh).

If the tariff hike is given the nod, it is expected to have an impact of around Rs60 billion, including GST, on the consumers. The power tariff hike would not be applicable to lifeline consumers or the customers of K-Electric.

The most expensive electricity was generated from high-speed diesel (HSD) during the month of January 2022. The cost of the electricity produced using HSD registered at Rs25.98 per unit.

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This was followed by furnace oil that stood at Rs22.80 per unit, LNG at Rs16.70 per unit, coal at Rs14.10 per unit, gas at Rs7.74 per unit, nuclear at Rs1.07 per unit and bagasse at Rs5.98 per unit.

Nepra, in a public hearing notice about the FCA for the month of January, has invited all the interested parties to raise written as well as oral objections as permissible under the law.

Under Section 31(7) of the Nepra Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the authority in the tariff determinations of ex-WAPDA distribution companies, the authority may on monthly basis make adjustments in the approved tariff on account of any variations in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.

Consumers are already going to pay a higher rate of electricity tariff in this month’s bills -- an increase of Rs3.10 per unit -- on account of expensive use of fuel in power plants in December last year.

The increase would only apply to bills for the month of February, it added.

Earlier in November, customers were charged Rs4.30 per unit on account of FCA that was for only one month.

December's power tariff on account of FCA will be charged Rs1.20 less in February than in November, according to Nepra.