Another tariff hike looms

CPPA requests increase of Rs1.8290/unit due to fuel adjustments

ISLAMABAD:

In what may spell further trouble for power consumers, the Central Power Purchasing Agency (CPPA) has applied to increase the power tariff by Rs1.8290 per unit due to fuel adjustments for August 2023. The application has been submitted to the National Electric Power Regulatory Authority (NEPRA), triggering concerns of an additional financial burden on consumers already grappling with rising utility costs.

The CPPA, acting on behalf of power distribution companies (DISCOs) except K-Electric, is seeking NEPRA’s approval for this tariff increase. NEPRA is set to conduct a hearing on this matter on September 27. If approved, this adjustment will have a significant impact on electricity bills across the country.

The CPPA’s petition reveals that the reference price for August 2023 was Rs6.645 per unit, while the actual price was Rs8.47 per unit, justifying the proposed tariff increase. In its application, the CPPA reported that the total electricity generated in August amounted to 15,959 GWh (giga-watt hours), with an average price of Rs8.2654 per unit. The total energy cost for the month was Rs131,910 million.

Hydropower generation contributed 37.63% of the total, with 6,006 GWh generated. Coal-fired power plants produced 2,357 GWh (1,638 GWh local + 719 GWh imported coal), making up 14.77% of the total generation at an average price of Rs20.1430 per unit. Power generation from Residual Fuel Oil (RFO) accounted for 4.51% of total generation, with 649 GWh at a cost of Rs33.3227 per unit.

Similarly, gas-based power plants generated 1,214 GWh, constituting 7.60% of the total generation, at a rate of Rs13.2190 per unit. Re-gasified Liquefied Natural Gas (RLNG) contributed 17.17% of total generation, with 2,741 GWh generated at Rs23.7148 per unit.

Additionally, electricity produced from bagasse amounted to 38 GWh, with a price of Rs5.9822 per unit. Wind power contributed 8.5 GWh (5.05% of total generation), while solar power contributed 84 GWh (0.53%) in August 2023.

Nuclear sources generated 2,040 GWh at a rate of Rs1.1725 per unit, making up 12.79% of the total generation. Electricity imported from Iran amounted to 26 GWh, costing Rs25.0981 per unit and accounting for 0.16% of the total power generation for the month.

The data provided by the CPPA-G to NEPRA indicates that the net electricity delivered to DISCOs in August 2023 was 15,472 GWh (96.95%) at a rate of Rs8.4746 per unit, with a total cost of Rs131,118 million. The CPPA-G’s tariff adjustment request argues that the reference fuel charges for August 2023 were set at Rs6.6457 per unit, while the actual fuel charges were recorded at Rs8.4747 per unit.

Published in The Express Tribune, September 20^th, 2023.

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