Power tariff raise under FCA imminent
Power tariff raise under FCA imminent

ISLAMABAD: The government is all set to further burden power consumers with over Rs4 per unit increase in tariff under the garb of Fuel Component Adjustment (FCA) and raise in base tariff as per agreement with the International Monetary Fund (IMF) and World Bank.

The Central Power Purchasing Agency (CPPA-G), an arm of Power Division, has sought an increase of Rs 2.66 per unit increase in Disco tariffs for September 2021 under FCA mechanism. The key reason for the proposed increase in FCA as generation from expensive fuels due to short supply of RLNG and also higher price of LNG in the international market.

However, National Electric Power Regulatory Authority (Nepra) is scheduled to conduct a public hearing on the request of CPPA-G.

According to the data submitted to Nepra, in September 2021, hydel generation was recorded 5,085.48 GWh, which constituted 36.24 percent of total generation in the entire month.

Power generation from coal-fired power plants was 2,392.52 GWh (17.05 per cent of total generation) at a rate of Rs10.0809 per unit, with two rupees per unit increase in September as compared to July 2021. Generation from HSD was recorded just at 2.34 GWh (0.02 per cent) at Rs 21.37471 per unit. Generation from RFO was 997.44 GWh (7.11per cent of total generation) at Rs 12.2323 per unit which was also two rupees per unit more than the rates of July 2021.

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However, electricity generation from gas-based power plants was 1,248.28 GWh (8.90 per cent) at Rs 8.3329 per unit. The statistics indicate that generation from natural gas was less in September as compared to July.

Generation from RLNG was 2,651..95 GWh (18.90 per cent of total generation) at Rs 14.9104 per unit, which shows generation from RLNG was also less in September as compared to July and at the same time its price was also two rupees higher in September as compared to July.

Electricity generation from nuclear sources was 1,281.80 GWh at Rs0.9813 per unit (9.13 per cent of total generation), and electricity imported from Iran was 48.27 GWh at Rs13.1146 per unit.

Power generation from different sources (mixed) was 16.18 GWh at a price of Rs4.6382 per unit. The generation from baggasse was recorded at 16.48 GWh at Rs5.9819 per unit.

The energy generated from wind was recorded at 230.40 GWh, 1.64 per cent of total generation and solar at 60.75 GWh, 0.43 per cent of total generation in September 2021.

The total energy generated was recorded at 14,031.89 GWh, at a basket price of Rs 6.7960 per unit. The total cost of energy was Rs95.361 billion.

The CPPA-G also sought previous adjustment/ supplemental charges of over Rs 10 billion. The sale to IPPs was also reduced by 25.43 GWh, the price of which was Rs 725 million while the reduction in transmission losses was recorded at 376.55 GWh.

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According to the CCPA-G data, net electricity delivered to Discos in September 2021 was 13,629.91 GWh at a rate of Rs 7.6816 per unit, total price of which was Rs 104.699 billion.

The CPPA-G in its tariff petition maintains that since the reference fuel charges for September 2021 were estimated at Rs5.0229 per unit whereas the actual fuel charges were Rs 7.6816 per unit, hence an increase of Rs 2.6587 per unit has been sought for the September 2021.

The Federal Cabinet has already approved an increase of Rs 1.39 per unit in base tariff at the national level from November 1, 2021; Nepra will also conduct a public hearing as a formality to put a stamp on the Cabinet decision. Almost 40 per cent taxes and surcharges are over and above the approved increase in tariff.

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