Another power jolt in offing

A nation already reeling from sky-rocketing inflation, ever-rising fuel costs, economic instability and employment insecurity prepares for another jolt as the power companies seek Rs2.9402 per unit on account of fuel adjustment for the month of March 2024.

The Central Power Purchasing Agency (CPPA), on the request of power distribution companies (Discos), has submitted an application to National Electric Power Regulatory Authority (Nepra).

The application seeks increasing the electricity price by Rs2.9402 per kilowatt hour (kWh) under the Fuel Charges Adjustment (FCA) head for March.

Following the request, the power regulator has called a public hearing on April 26.

Read more: Changes to Electricity Act sought

In a public hearing notice, Nepra has invited all the interested/affected parties to raise written/oral objections as permissible under the law at the public hearing.

The CPPA, in its application, has claimed that the total electricity generated with various fuels in March 2024 was recorded at 8,023 gigawatt-hours (GWh), at Rs8.3109 per unit. The total cost of energy had been Rs66,680 million.

The power generation with the hydel source was 2,217 GWh constituting 27.63 percent with zero cost of power generation while power production with coal-fired power plants was 862 GWh (local coal) and the total power generated had been for Rs14,459 million (Rs16.7779/unit).

Similarly, the power generation from gas-based power plants was 795 GWh, 9.91 percent of the total generation, totaling Rs13.6857 per unit and the generation from re-gasified Liquefied Natural Gas (RLNG) was 1,658 GWh, which was 20.67 percent of total generation, at Rs22.1917 per unit.

Likewise, power production from bagasse was recorded at 78 GWh, the price of which has been calculated at Rs5.9822 per unit. The electricity generated from wind was recorded at 205 GWh, 2.55 per cent of total generation and solar at 110 GWh, 1.37 per cent of the total generation in March 2024.

Moreover, the electricity generation from nuclear sources was 2,070 GWh which came out at Rs1.5488 per unit, 25.79 per cent of the total generation, and electricity imported from Iran was 28 GWh amounting to Rs30.3729 per unit, 0.35 per cent of the total power generation in the month of March 2024.

It is also learnt from the data submitted by the CCPA with Nepra that net electricity delivered to Discos in March 2024 was 7,756 GWh (96.67pc) at a rate of Rs9.3819 per unit, the total price of which was Rs72,764 million.

On Tuesday, the Power Division, in a press statement, hinted at reduction in power tariff on account of FCA for the month of March, 2024.

The Power Division also claimed that as a result of the government’s efforts, the request for the reduction in electricity bills has been submitted to Nepra for the third consecutive month.

The electricity bills for March were brought down from Rs7.6/unit to Rs4.92 per unit.

It is pertinent to mention here that in February adjustment, Nepra had increased the price of electricity by Rs4.92 per unit, while in the January fuel price adjustment, the price of electricity was increased by Rs7.6 per unit.