Users to pay Rs34bn more for power used in September

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday notified an additional fuel cost charge of Rs2.51 per unit to consumers so that ex-Wapda distribution companies (Discos) could mop up additional revenue of Rs34 billion in November.

In a notification issued on Tuesday, the regulator said it “has reviewed and assessed an increase of Rs2.5272/kWh in the applicable tariff for XW-DISCOs on account of variations in the fuel charges for the month of September 2021”.

The increase has been allowed on account of monthly fuel cost adjustment (FCA) for electricity consumed in September. This will be charged to consumers in the current billing month (November). The tariff increase will be applicable to all consumers, except lifeline consumers using 50 units per month. This FCA is also not applicable to K-Electric consumers.

The regulator had conducted a public hearing on the matter on Oct 27. Discos had demanded about Rs2.66 per unit increase in electricity rates on account of higher generation cost in September with additional revenue claim of Rs36bn.

On behalf of all ex-Wapda Discos, the Central Power Purchasing Agency (CPPA) claimed that Discos had charged a reference fuel cost of Rs5.023 per unit to consumers in September, but the actual fuel cost turned out to be Rs7.68 per unit, up 53pc, hence an additional cost of Rs2.66 per unit should be charged to consumers.

However, after various adjustments and disallowed claims, Nepra worked out an increase of about Rs2.52 per unit in additional FCA. The additional charge will remain applicable for one month. Nepra worked out actual fuel cost at Rs7.55 per unit in September.

The public hearing was told that the share of inexpensive hydropower in overall power generation had slightly improved, but the increase in prices of imported fuels — coal, LNG and furnace oil — had necessitated additional burden on consumers.

Total energy generation from all sources in September stood at 14,032 gigawatt hour (GWh) at a cost of Rs95.36bn. Of this, about 13,629 GWh was delivered to Discos at Rs104.7bn. Interestingly, the share of hydropower supply increased to 36.24pc in September from about 35pc in August and had no fuel cost.

On the other hand, LNG-based power contribution also increased to 18.9pc in September compared to 18pc in August. The CPPA reported that total energy generation from all sources in September stood at 14,032 GWh at a cost of Rs95.36bn or Rs6.80 per unit. Of this, about 13,629 GWh was delivered to Discos at Rs104.7bn, at an average rate of Rs7.68 per unit.

When compared with September 2020, the power generation increased by about 7pc, while the overall fuel cost went up by almost 65pc. Of this, LNG-based fuel cost more than doubled (up 120pc) when compared with last year, while coal-based fuel cost was higher by 65pc when compared to September 2020. The share of coal generation stood at 17pc in September against 14pc in August, 18pc in June and 20pc in May.

On the other hand, generation from furnace oil-based plants stood at 7.1pc in September against 10.12pc in August, 14pc in June, 6pc in May and 2.62pc in April.

The share of RLNG-based power generation to the national grid stood at 18.9pc in September, against 18pc in August, 20pc in July, 18.8pc in June and 22pc in May. The share of local gas-based generation slightly increased to 8.9pc September against 8.17pc in August.

On the other hand, the share of nuclear power slightly dropped to 9.13pc in September against 10pc in August and 11.27pc in June. The share of wind power and baggase stood at 1.76pc in September against 4pc in August.

The coal-based fuel cost also increased to Rs10.1 per unit in September against Rs9 per unit in August and Rs8 per unit over the past few months.

Nuclear energy fuel cost stood at 98 paisa per unit, while power produced from local gas remained unchanged at Rs8.3 per unit.