ISLAMABAD - National Electric Power Regulatory Authority (NEPRA) Friday approved massive hike of Rs.9.8972 per unit in power tariff of Ex-Wapda power distribution companies (XWDiscos) on account of fuel charges adjustment for June 2022.

The Authority has reviewed and assessed an increase of Rs.9.8972/kWh in the applicable tariff for Ex-WAPDA DISCOs on account of variation in the fuel charges for the month of June 2022, said a decision issued here by NEPRA.

The Central Power Purchasing Agency (CPPA-G), on the behalf of power distribution companies (XWDISOCs), had requested that for the month of June the reference fuel charges from the consumers were Rs 5.9344/unit while the actual fuel cost was Rs 15.8439/unit. The CPPA-G requested that it should be allowed to pass the increase of Rs 9.9095/unit to the consumers.

According the decision, the increase of Rs.9.8972/unit shall be applicable to all the consumer categories except lifeline consumers of all the XWDISCOs. The distribution companies shall reflect the fuel charges adjustment in respect of June 2022 in the billing month of August 2022. The increase will burden the power consumers of XWDiscos with an additional Rs 156 billion (FCA+GST) in the month of August.

The Authority observed that CPPA-G has purchased energy of 51.494 GWh from Tavanir Iran in June 2022 at a cost of Rs.1,007.73 million, however, contract between CPPA-G and Tavanir Iran for import of power up-to 104 MW has expired on December 31, 2021. In view thereof, the cost of electricity purchased from Tavanir Iran is being allowed strictly on provisional basis, subject to its adjustment once the Authority decides the extension in the contract between CPPA-G and Tavanir Iran or otherwise. The cost being allowed on provisional basis is to avoid piling up of the cost and one time burdening of the consumers in future.

The regulator also observed that energy from costlier RFO based power plants was generated to the tune of over Rs.5.263 million, during the month of June 2022.

The Authority observed that the required data/information was submitted by CPPA-G along-with the monthly FCA data of June 2022, however, the same was not as per the requirements of the Authority.

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. 84.9 million (Rs.73.86 million financial impact due to system constraints and Rs. 11.04 million due to underutilization of efficient power plants).

It was further observed, that the three most efficient RLNG power plants in Pakistan power sector are the Quaid-e-Azam Thermal Power Plant (O.ATPL), two power plants of National Power Parks Management Company Limited at Haveli Bahadur Shah (HBS) and Baloki; efficiency of these power plants is above 61%. The utilization factors of these three most efficient RLNG power plants were; QATPL around (78%), HBS around (91%) and Baloki around (75%) during the month of June 2022. It is noted that the accumulated claim by these power plants against part load operation is Rs 3.026 billion. In the wake of high load demand in the system and ongoing electricity shortfall in the country, the full utilization of these power plants could minimize the loadshedding on one hand while on the other hand it could help avoid part load charges of Rs 3.026 billion

As per the data submitted by NPCC, the average RLNG allocated to power sector during the month of June, 2022 was 800 MMCFD against a demand of 845 MMCFD that resulted in indicative financial impact of Rs. 776.94 million during the aforesaid month. Due to system constraints, plants were operated in violation of EMO that resulted in financial impact of 73.86 million during the month of June 2022. Such constraints in transmission system are failure of the relevant entities in performing their core functions.

The utilization factor of power plants at Central Power Generation Company Limited (CPGCL), including the newly commissioned Guddu 747 machine, remained very low despite availability of dedicated cheaper gas. Forced outage of unit 14 (373MW) of Guddu 747 and Guddu old units (6, 12 & 13) resulted in financial losses due to operation of costlier power plants.