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Discos seek 64-paisa hike in power tariff

Updated November 13, 2018

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Agency says it charged consumers a reference tariff of Rs5.23 per unit in October, while actual fuel cost is Rs5.88. — Dawn/File
Agency says it charged consumers a reference tariff of Rs5.23 per unit in October, while actual fuel cost is Rs5.88. — Dawn/File

ISLAMABAD: The ex-Wapda Distribution companies (Discos) have sought about 64 paisa per unit increase in consumer tariff on account of monthly fuel price adjustment due to currency devaluation and adverse hydrological conditions and fuel mix.

The National Electric Power Regulatory Authority (Nepra) on Nov 14 will take up for public hearing a petition for increase in consumer tariff for Discos on account of fuel cost adjustment for electricity consumed in October. The higher electricity rates, on approval by the regulator, would be recovered from consumers in the upcoming billing month i.e December.

The Central Power Purchasing Agency-Guarantee (CPPA-G) on behalf of the Discos claimed an additional cost of 64 paisa per unit under base tariff 2015-16. The agency in its petition said it had charged consumers a reference tariff of Rs5.23 per unit in October while the actual fuel cost turned out to be Rs5.88 per unit and hence it should be allowed to recover 64 paisa per unit additional cost from consumers next month.

Total energy generation from all sources in October was recorded at 9,574GWh compared to 12,552GWh generation in September, showing almost 24 per cent decline, in line with reduced demand. Generation in the outgoing month was almost 32pc lower than 14,017GWh of August.

The total cost of energy generated in October amounted to Rs52.13 billion. About 9308GWh were sold to Discos at Rs54.73bn with a transmission loss of 2.66pc.

The share of hydel power generation in October dropped to 25pc, compared to its 34pc share in September, followed by regasified liquefied natural gas (RLNG)-based power generation at 22.92pc.

In contrast, residual fuel oil (RFO)-based generation was reported at 7.88pc, slightly lower than September’s 8.1pc while locally produced gas-based generation stood at 20pc, from 15.78pc. Coal-based generation on the other hand accounted for 12pc, from 9.1pc.

There was no fuel cost on hydroelectricity compared to coal-based fuel at Rs3.38 per unit - almost half of its generation cost of Rs6.48 per unit in September. The furnace oil-based plants generated electricity at the rate of Rs14.43 per unit as against Rs15.56 per unit fuel cost the month before.

LNG-based generation cost remained unchanged at Rs9.9 per unit, domestic gas at Rs5.5 per unit compared to Rs4.85 per unit last month in view of gas price increased by the government.

Nuclear energy contributed 9.27pc electricity at fuel cost of 97 paisa per unit, sugar mills less than 1pc at Rs6.2 per unit, imports from Iran 0.48pc at Rs11.57 per unit, wind and solar 0.98pc and 0.64pc at no cost.

The adjustment will not be charged to lifeline consumers - using up to 50 units per month - but all other would have to bear it. The decision will not be applicable to K-Electric consumers.

Published in Dawn, November 13th, 2018

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