ISLAMABAD - National Electric Power Regulatory Authority (Nepra) on Wednesday allowed CPPA-G to return Rs 0.43 per unit or Rs 4.4 bn, which was charged over and above the actual electricity cost from the power consumers during the month of April.

In a public hearing on CPPA-G petition for the month of April on account of fuel adjustment, Nepra has noted that after the calculation CPPA-G needs to return Rs 0.86 per unit, against Rs 0.84 per unit requested by the petitioner, to power consumers for the month of April, however half of this amount (Rs0.43 per unit) will be adjusted against the previous adjustments for the past months.

At the hearing which was presided over by Chairman Nepra Tauseef H Farooqi, the regulator noted that instead of RLNG expensive fuel was utilized to run the power plants in violation of merit order. During the hearing, Nepra officials said that running the plants without merit order cost the consumers’ multimillion rupee loss. Not utilising RLNG for power generation has financial impact of Rs 6.55 million, the violation of merit order cost another Rs 159 million, the financial impact due to underutilization of efficient power plant was Rs 149.31 million and financial impact due to Technical constraints was Rs 3.35 million, the regulator noted. 

Nepra approved a reduction of Rs 0.86 per unit in fuel adjustment. However, the regulator allowed past adjustment of Rs 4.47 billion to CPPA, depriving consumers of half (Rs0.43 per unit) of the relief and allowed it to pass on another half of the amount (Rs 0.43 reduction) to consumers). The Consumers will get their extra charged Rs 4.4 billion in next bills. The decision will not apply to consumers with 100 units and KE consumers.

During the hearing,  the Nepra chairman said that he had written to the government not to carry out load shedding but the government has to do this, adding that the non-operation of better capacity plants was an additional burden on the consumers. In collaboration with the ministry, a monthly reporting system has been developed on revolving credit He is preparing a monthly report on revolving credit. A detailed decision and notification of reduction in electricity prices will be issued on Friday. The Central Power Purchasing Agency Guaranteed (CPPA-G) in its petition had requested National Electric Power Regulatory Authority (Nepra) to approve a refund of Rs 0.84 per unit under FCA mechanism for the consumers of Discos overcharged in April 2021.

In its tariff petition CPPA-G said that since the consumers were charged the reference fuel charges of Rs 6.6087 per unit whereas the actual fuel charges were Rs 5.7680 per unit, hence a reduction of Rs 0.84 per unit has been sought.

The total energy generated in June was 10,481 GWh, at a basket price of Rs 5.5747 per unit. The total cost of energy was Rs 58.428 billion. CPPA-G also sought supplemental charges of Rs 1.132 billion. net electricity delivered to Discos in was 10,193,56 GWh at a rate of Rs 5.7680 per unit, total price of which was Rs 58.797 billion, said the data.

As per the data hydel generation was 2,572, 58 GWh or 24.55 percent of the total generation. Power generation from coal-fired power plants was 243,988 GWh or 23.28 percent of total generation at a rate of Rs 8.00 per unit, from RFO 147.85 GWh or 1.47 percent electricity was generated at Rs 12 per unit.

Electricity generation from natural gas was 1,278 GWh or 12.19 percent at Rs 7.4599 per unit, RLNG - 2,571, 55 GWh or 24.54 percent at Rs 9.8889 per unit, the nuclear power contributed 1,067 GWh or 10.18 percent at Rs 1.1052 per unit, and electricity imported from Iran was 44.84 GWh at Rs 9.4093 per unit.

The mixed generation was 22.74 GWh at a price of Rs 5.3932 per unit, generation from baggasse contributed 71.18 GWh at Rs 5.9822 per unit The energy generated from wind contributed 197.30 GWh, or 1.88 percent of total generation and solar 68.03 GWh or  1.88 percent.