Pakistan

Power tariff hiked by Rs3.33 per kWh for April

FCA raise not to apply on EVCS, lifeline and KE consumers

Our Correspondent June 07, 2024

Capacity payments go to the power plants which remain idle and do not produce any electricity but consumers are compelled to pay due to the agreements signed by different governments. PHOTO: FILE

ISLAMABAD:

The National Electric Power Regulatory Authority (Nepra) has increased the power tariff by Rs3.33 per kilowatt hour (kWh) on account of fuel cost adjustment (FCA) charges for the month of April 2024.

The consumers of power distribution companies (Discos) will bear this additional burden in the current month's bills.

The adjustment of Rs3.33/kWh shall be applicable to all the consumer categories except Electric Vehicle Charging Stations (EVCS), lifeline consumers and consumers of K-Electric as well, a Nepra notification stated.

“The said adjustment shall be shown separately in the consumers' bills on the basis of units billed to the consumers in the month of April 2024. Discos shall reflect the fuel charges adjustment in respect of April 2024 in the billing month of June 2024,” the notification added.

The Discos are directed that while charging the FCA from their consumers, the order of the honorable court(s), if any, be kept in mind and ensure compliance with the order(s) of the court(s), whatsoever, in this regard, the Nepra decision on FCA of April 2024 said.

In case of non-compliance of court(s) order the concerned Discos shall be held responsible for violating/defying the orders of the honorable court(s), it added.

Pursuant to Section 31(7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 as amended through Regulation of Generation, Transmission and Distribution of Electric Power (Amendment) Act 2011 (Act No XVIII of 2011), amended subsequently through Act No XIV of 2021, Nepra makes and notifies the adjustments on account of variations in fuel charges in the approved tariff of Discos.

Earlier, the Central Power Purchasing Agency (CPPA) had submitted an application to Nepra on the request of Discos to increase the electricity price by Rs3.48 per kWh under the head of FCA for April 2024.

The CPPA, in its application, claimed that the total electricity generated with various fuels in March 2024 was recorded at 8,639 gigawatt-hour (GWh), at Rs9.20 per unit. The total cost of energy was Rs79,556 million.

The power generation with the hydel source was 2,070GWh constituting 23.96 per cent with zero cost of power generation while power production with coal-fired power plants was 902GWh (local coal). The total power generated was for Rs14,421 million.

Similarly, the power generation from gas-based power plants was 975GWh, 11.28 per cent of the total generation, totaling Rs13.2535 per unit and the generation from Re-gasified Liquefied Natural Gas (RLNG) was 2,157GWh, which was 24.97 per cent of the total generation, at Rs 22.12 per unit.

Likewise, power production from bagasse was recorded at 56GWh, the price of which has been calculated at Rs5.98 per unit. The electricity generated from wind was recorded at 287GWh, 3.32 per cent of total generation and solar at 113 GWh, 1.31 per cent of the total generation in April 2024.

Moreover, the electricity generation from nuclear sources was 2,043GWh which came out at Rs1.5341 per unit, 23.64 per cent of the total generation, and electricity imported from Iran was 37GWh amounting to Rs27.44 per unit, 0.43 per cent of the total power generation in the month of April 2024.

It has also been learnt from the data submitted by the CCPA with Nepra that net electricity delivered to Discos in April 2024 was 8,375GWh (96.94pc) at a rate of Rs8.98 per unit, the total price of which was Rs 72,205 million.