Nepra noted against actual fuel charge component of Rs 5.6734/unit, reference fuel charge component was 5.9322/unit

ISLAMABAD   -   National Electric Power Regulatory Authority (Nepra) has Monday allowed Central Power Purchasing Agency Guaranteed (CPPA-G) to return 26.44 paisas per unit which it had overcharged from the electricity consumers during the month of May.

Central Power Purchasing Agency Guaranteed (CPPA-G) had requested National Electric Power Regulatory Authority (Nepra) to allow refunding the overcharged tariff of 12.5 paisas per unit to the consumers of Discos for the month of May 2021 under FCA mechanism. Nepra had conducted hearing on Central Power Purchasing Agency Guaranteed (CPPA-G) petition last month.

During hearing Nepra had noted that against the actual fuel charge component of Rs 5.6734 per unit the reference fuel charge component was 5.9322 per unit. The fuel price variation for May was 25.88 paisa. Similarly deviation from Economic Merit Order caused an extra burden of amount Rs 354.29 million or 2.78 paisas per unit. The total decrease recommended was 28.66 paisas per unit and it will have the impact of Rs 3.6billion. However, Nepra has allowed 26.44 paisa per unit which will have an impact of Rs 3.3billion.

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In its petition CPPA-G said that the total energy generated in May was recorded at 13,009.51GWh, at Rs5.7009 per unit. The total cost of energy was Rs 74.166 billion. According to the CCPA-G data, net electricity delivered to Discos in May 2021 was 12,678.50GWh at Rs5.8067 per unit, total price of which was Rs73.620 billion. CPPA-G in its petition said that since the reference fuel charges for May 2021 were estimated at Rs5.9322 per unit whereas the actual fuel charges were Rs5.8067 per unit, hence a reduction of 12.55 paisas per unit has been sought for the month May 2021. CPPA-G also sought a reduction of Rs23 million in supplemental charges.

According to the data submitted to Nepra, in May 2021, hydel generation recorded at 3,465.58GWh or 26.64 per cent of total generation. Power generation from coal-fired power plants was 2,618.97GWh (20.13 per cent) at Rs7.83 per unit, whereas generation from HSD was recorded at 20.32GWh at Rs21.69 per unit. Generation from RFO was 771.5GWh (5.93 per cent) at Rs 14.34 per unit.

In a statement Nepra said that the FCA of May 2021 shall be charged in the billing month of July 2021 to all consumer categories of XWDiscos, except life line consumers i.e. having consumption up-to 50 units, domestic consumers consuming up-to 300 units and Agriculture Consumers of all the XWDiscos. It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. Further industrial consumers availing ISP will not get the benefit of Negative FCA on incremental sales only. They will however, get the benefit of negative FCA on base tariff billed units. This FCA would remain applicable only for one month. This FCA is not applicable to KE consumers.