Discos allowed to extract Rs26.5bn more

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday notified an additional fuel cost adjustment (FCA) of Rs1.71 per unit for consumers of ex-Wapda distribution companies (Discos) with a net financial impact of Rs26.5 billion for electricity consumed in August.

The “adjustment of Rs1.7141/kWh shall apply to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers.

The said adjustment shall be shown separately in the consumers’ bills based on units consumed in August. Discos shall reflect the fuel charges adjustment in respect of July in October bills”, said Nepra’s notification that would yield about Rs26.5bn additional funds to Discos.

The Central Power Purchasing Agency (CPPA), on behalf of Discos, had demanded Rs1.83 per unit additional FCA for the said month to raise Rs29bn. However, the regulator after holding a public hearing and verifying the certified data based on documentary evidence worked out Rs1.71 per unit additional FCA to be charged to consumers during the current billing month.

The additional FCA has again emerged even though over 74pc power generation in August — against 64pc in July — came from local cheaper fuels like hydro, coal, gas, nuclear, wind, solar and baggase and base annual tariff had also gone up by 26pc in July. More particularly, the country’s hydropower plants made the healthiest contribution of almost 38pc to overall national power grid in August, against 37pc in July and 26.96pc in June. Hydropower has no fuel cost.

According to CPPA, the consumers had been charged at a reference fuel cost of Rs6.65 per unit in August, but the actual cost turned out to be Rs8.47 per unit, hence an additional charge of Rs1.83 per unit should be allowed. A total of 15,472 Gwh were sold by the 10 Discos during August. The additional FCA would be on top of Rs3.28 per unit to be charged to consumers for six months, beginning Oct 1 under quarterly tariff adjustment.

After hydropower, the LNG-based power generation at 17.17pc stood second in August, down from 19.67pc in July and 18.55pc in June. The third largest share of 12.79pc in August came from nuclear power plants, down from 14.2pc in July and 13.54pc in June this year.

This was followed by coal-based power generation at 14.8pc including local coal-based generation that stood at 10.3pc and that of imported coal at 4.51pc. In July this year, the cumulative (local and imported) coal-based generation stood at 14.69pc compared to 17.75pc share in June.

Power supply from domestic gas maintained its downward journey and contributed just 7.60pc to the national grid in August against 7.61pc in July, 8.54pc in June, 10.35pc in May and 12pc in April.