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ISLAMABAD: The ex-Wapda Distribution companies (Discos) have sought about Rs1.94 per unit increase in consumer tariff on account of monthly fuel price adjustment mainly due to higher dependence on furnace oil consumption and negligible hydropower availability.

The furnace oil-based generation contributed the highest share of about 22.2 per cent to the overall power production in January compared to just 12pc of December.

The cost of furnace oil-based generation increased to 43pc (Rs24bn) of the total monthly cost of Rs56bn, compared to 32pc (Rs14.2bn) of the total monthly fuel bill of Rs44bn in December 2018.

The National Electric Power Regulatory Authority (Nepra) will take up public hearing on Feb 20 of a petition for increase in consumer tariff for ex-Wapda distribution companies (Discos) on account of fuel cost adjustment of electricity consumed in January.

The higher electricity rates, on approval by the regulator, will be recovered from consumers in the upcoming billing month of March. The Central Power Purchasing Agency-Guarantee (CP­PA-G) on behalf of the Discos claimed an additional cost of Rs1.94 per unit under base tariff 2015-16.

The CPPA in its petition said it had charged consumers a reference tariff of Rs5.76 per unit in January, while the actual fuel cost turned out to be Rs7.70 per unit, and hence it should be allowed to recover the Rs1.94 per unit additional cost from consumers next month.

The total energy generation from all sources in January 2018 was recorded at 7,763GWh against 7,718GWh in December. The total cost of energy generated in January amounted to Rs56.73bn, having an average per unit fuel cost of Rs7.31 per unit.

Published in Dawn, February 16th, 2019