ISLAMABAD - The National Electric Power Regulatory Authority is all set to allow power distribution companies (Discos) and K-Electric to transfer the burden of Rs 42 billion to the electricity consumers on account of fuel charges adjustments for the month of March.

In a public hearing on tariff petitions of Central Power Purchasing Agency Guarantee Limited (CPPA-G) and KE, NEPRA has hinted an increase of Rs 2.87/unit and Rs 4.83/unit in tariff respectively for Discos and KE. National Electric Power Regulatory Authority (NEPRA) has conducted public hearing on petitions of CPPA and KE for power tariff increase on account of monthly FCA for March. The hearing presided over by Tauseef H Farooqui also discussed the matter related to electricity shortage and excessive loadshedding in the country. Chairman NEPRA asked Power Division that why fuel was not arranged for thermal power plants. Representative of NPCC informed that the temperature was abnormally increased which has resulted in increasing the electricity demand. Vice Chairman NEPRA, Rafique Shaikh asked NPCC that why you don’t have advance weather forecast. Official of the NPCC said that metrological department is not providing the accurate forecast. Chairman NEPRA said what kind of reply is this? We don’t live in 1970. He asked NPCC and CPPA to improve the electricity supply.

In its petition, on behalf of Discos, the Central Power Purchasing Agency Guarantee Limited (CPPA-G) had sought an increase of Rs3.1573/unit in electricity tariff on account of monthly fuel charges adjustment (FCA) for March 2022. The CPPA-G further said the total energy generated during March increased to 10418 GWh from 8087 Gigawatt hours (GWh) in February. The total generation cost in March was Rs 96.032b. The generation cost of per unit energy was Rs 9.2176/unit. According to the CCPA-G data, net electricity delivered to Discos was 10,078.73 GWh at the cost of Rs 94.608bn or Rs 9.3869/unit.

However, according the NEPRA calculation, the tariff increase could be up to Rs 2.86/unit. The impact on the power consumers will be around Rs 33b (Rs 28.9b for fuel component and around Rs 4b for GST). According to a petition submitted to NEPRA, on the behalf of power distribution companies (XWDISOCs), the CPPA-G said that for the month of March the reference fuel charges from the consumers were Rs 6.2295/unit while the actual fuel cost was Rs 9.3869/unit. Therefore it should be allowed to pass the increase of Rs 3.1574/unit to the consumers. According the CPPA-G petition, transmission losses were also high in March and stood at 2.94pc. The CPPA said that the hydel power generation contributed 1703.91 GWh or 16.35 to the national grid in March. The share of coal in power generation was 2586.62GWh or 24.83pc. The cost of coal generation was Rs 12.4116/unit in March. The electricity generated from furnace oil during March increased to 1106.19 GWh 10.65pc from 526.73 GWh or 6.51pc in February. The cost of RFO based electricity was Rs 22.5214/unit. Electricity generation from gas-based power plants in March increased to 992.72GWh from 918.40GWh during the previous month. The cost of the gas based electricity was Rs 7.7872/unit. RLNG based generation had further increased to 1965.68GWh in March from 1226.01 GWh in February. The cost of the RNLNG based electricity is Rs 14.3677/unit. The generation from nuclear power plants was 1563.66GWh in or 15.01pc in March, at Rs 1.0335/unit. Electricity imported from Iran was 42.75GWh in March. The cost of Iranian electricity was Rs 17.3565/unit. The power generation from baggasse contributed 107.01GWh in March at Rs 5.9822/unit. The power generation from different sources (mixed) was 13.22GWh at a price of Rs 4.8339/unit, while generation from wind was recorded at 267.92 GWh or 2.57pc and solar generation was 68.73GWh. Nepra will hold public hearing on CPPA-G petition on April 27, 2022.

In its petition, K-Electric had sought an increase of Rs 5.27/unit in power tariff on account of fuel charges adjustments for March. The NEPRA official informed that KE didn’t run some of the efficient power plants as per its capacity. After going through the data it has been observed by the NEPRA officials that the increase will be around Rs 4.83/unit. The impact of the KE increase along with GST will be around Rs 9b.NEPRA has reserved the judgment and will announce the final decision later.