ISLAMABAD - National Electric Power Regulatory Authority (Nepra) has notified an increase of Rs 7.90 per unit in tariff for XWDiscos and Rs 9.52/unit for K-Electric on account of fuel charges adjustment for the month of May 2022. In separate decisions issued here, Nepra approved massive tariff increases for XWDiscos and KE. CPPA-G had requested an increase of Rs 7.96 per unit. NEPRA had conducted a public hearing on CPPA petition on June 27, 2022. CPPA-G had submitted an application for an increase of Rs 7.96 per unit in power rate. According to the examination of the data, Nepra had worked out an increase of Rs. 7.90/unit for the XWDiscos. The increase will have an impact of Rs131.8b on Discos consumers. In a petition submitted to NEPRA, Central Power Purchasing Agency (CPPA-G) said that the per unit generation cost during May was Rs13.8969/unit which was higher than the reference fuel cost of Rs5.93/unit charged from the electricity consumers during the month. CPPA-G had requested NEPRA to allow recovery of Rs7.96/unit from the power consumers in their next monthly bills. In the data shared with the regulator, the CPPA-G informed that 3590.92 GWh (24.5pc) electricity was generated from hydle during May. It was also informed that the 1290.33GWh (8.80pc) expensive electricity was generated from furnace oil at Rs33.67/ unit, while 28.48GWh (0,19pc) high speed diesel based power was generated at Rs 30.09/unit.

Power prices have been increased on account of fuel charges adjustment for May 2022

The cost of re-gasified liquefied natural gas (RLNG) based electricity was also increased to Rs27.92/unit and it contributed 3355.23GWh( 22.89pc) of electricity to the national grid. The coal based electricity contributed 2018.19GWh electricity (13.77pc) to national grid at Rs18.01/unit. The nuclear power plants generated 1890.38GWh (12.90pc) cheap energy at Rs1.05/unit. Pakistan has imported 54.52GWh electricity from Iran mainly at the cost of Rs18.95/unit. From baggasse, 78.26GWh electricity was generated at Rs5.98/unit. Wind, solar contributed 779.13GWh and 89.89GWh respectively to the national grid during May. The May FCA will be charged in July’s bill and it will apply to all Discos customers except lifeline and KE consumers, NEPRA said. According to notification the Authority from the data provided by CPPA-G, observed that fuel cost of power plants have been claimed by CPPA-G as per the Authority’s approved rates. As per the data submitted by CPPA-G, XWDISCOs purchased 16.769 GWh from Captive Power Plants (CPPs) during May 2022. CPPA-G provided actual details of energy purchased from these plants. According to the details provided by CPPA-G, the actual fuel cost of this energy is Rs.78.594 million. During the hearing, the Authority also observed that energy from costlier RFO and HSD based power plants was generated to the tune of over Rs.43,452 million and Rs.857 million respectively, during the month of May 2022. The Authority has been directing NPCC, NTDC & CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from Economic Merit Order (EMO), showing hourly generation along-with the financial impact for deviation from EMO. NPCC/NTDC during the hearing explained operation of power plants on RFO, however, the Authority observed that an in-house analysis has also been carried out, to work out the financial impact due to deviation from EMO based on the information submitted by NPCC. As per the in-house analysis workings carried out, the net amount deductible, on provisional basis, from the overall claim due to deviation from EMO is Rs. 796 million. The regulator has worked out Rs. 794.61 million financial impact due to system constraints and Rs. 1.4 million due to underutilization of efficient power plants. The Authority has decided to deduct this amount provisionally in the instant FCA, until NPCC/ NTDC and CPPA-G provide the required details along-with complete justification in this regard to the satisfaction of the Authority. NTDCL reported provisional T&T losses of 323.345 GWh i.e. 2.42%, based on energy delivered on NTDCL system during May 2022. KE TARIFF INCREASE NEPRA has also approved massive increase in tariff for KE consumers by Rs 9.52/unit. However, KE will collect bills from customers in two months, NEPRA said in a notification. The increase will have an impact of Rs22b on KE’s consumers. In July, consumers will be charged Rs 2.63 and Rs 6 89 per unit in month of August 2022. K Electric had requested an increase of Rs 11. 34 per unit, the notification said. The Authority held a public hearing to consider a petition on July 4, 2022. This will only apply to July and August bills, the notification said. This will apply to all K-Electric consumers except the lifeline.