ISLAMABAD-The Ex-Wapda power distribution companies (XWDiscos) consumers are likely to pay an additional Rs 40 billion, as National Electricity Power Regulatory Authority has reserved judgment over a hike of Rs 4.66 per unit in power tariff amid criticism from the stakeholders who alleged that apparently under pressure from the Power Division, the regulator is enhancing the electricity rates.
In a public hearing on Central Power Purchasing Agency (CPPA) petition, Chairman Nepra noted that 13 percent reduction in power generation will enhance the monthly and quarterly adjustments for the consumers. If the electricity demand is less then the reference tariff increases, said Chairman Nepra. In its petition, the CPPA, on behalf of Ex-Wapda Discos (XWDiscos), had sought an increase of Rs4.6617 per unit which included Rs 2.1177/unit on account of previous adjustments and Rs 2.544/unit over reference fuel charges from consumers on account of fuel charges adjustments for November 2023. During hearing, member Nepra Balochistan Mathar Niaz Rana said that capacity payments is a serious issue. The lower the consumption of electricity, the more the price will increase, he maintained. Chairman Nepra Waseem Mukhtar said that some strategy will have to be formulated to get out of the current situation. The regulator asked CPPA to provide electricity consumption projection of six months.
Nepra came under severe criticism from the stakeholders who alleged the regulator for bowing to pressure of Power Division and therefore passing on burden of electricity prices to the consumers. Rejecting the criticism, the authority said that it had worked independently and conducted due diligence of the data prior to giving decision on power tariff. The proposed increase in electricity prices would result in burdening the power consumers with an additional burden of Rs 40 billion(FCA+ GST). Nepra also questioned the CPPA for running power plants on imported fuel during the period under review while shutting down the cheaper power plants for maintenance purpose. It was informed that Thar coal based power plants were shut down for maintenance purpose that resulted in higher electricity prices as currently, CPPA is generating electricity only from furnace oil plants.
Member Nepra Sindh Rafiq Sheikh said that in this season hydropower production is low and cheap plants too were closed for maintenance purpose. In winter, cheap plants are not being operated while in summer, both cheap and expensive ones have to be run, Rafiq Sheikh said. The power plants were run on expensive LNG imported fuel that caused higher electricity prices for the consumers in month of November 2023. The CPPA-G had also placed a request of previous adjustments of Rs 15.9 billion to be passed on to the consumers in electricity bills in January 2024. In its petition, CPPA said that that the total electricity generated with various fuels in the month of November was recorded a 7,547 GWh, at a price of Rs7.1704 per unit. The total cost of energy was Rs54.113 billion.
The power generation with a hydel source was 2,755 GWh (gigawatt per hour) constituting 36.50 per cent while power production with coal-fired power plants was 1,473 GWh (local + imported coal: 987+ 486GWh) which was 13.08 per cent and the total power generated at Rs15,078 million (Rs15.2698/unit). Similarly, the power generation from gas-based power plants was 695 GWh, 9.21 per cent of the total generation, totalling Rs14.6197 per unit and the generation from RLNG was 798 GWh, which was 10.57 per cent of total generation, at Rs23.7171 per unit. Likewise, power production from bagasse was recorded at 27 GWh, the price of which has been calculated at Rs5.9822 per unit. The electricity generated from wind was recorded at 148 GWh, 1.96 per cent of total generation and solar at 50 GWh, 0.66 per cent of the total generation in November 2023. Moreover, electricity generation from nuclear sources was 1,572 GWh which came out at Rs1.2071 per unit, 20.83 per cent of the total generation, and electricity imported from Iran was 30 GWh amounted to Rs27.7281 per unit, 0.39 per cent of the total power generation in the said month.
It was also learnt from the data submitted by the CCPA with NEPRA that net electricity delivered to DISCOs in November 2023 was 7,288GWh (96.57pc) at a rate of Rs9.4448 per unit, the total price of which was Rs68,834 million. Responding to questions regarding overbillings controversy, the authority said that they had implemented its decision in past and therefore, they would also enforce its recent decision. It said that they had issued explanation to the power distribution companies (Discos) and would start legal course of actions against them.