ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday notified an increase of 48 paisa per unit in electricity rates for ex-Wapda Distribution Companies (Discos) to generate an additional revenue of Rs7bn.

The increase was allowed on account of monthly fuel cost adjustment (FCA) for electricity consumed in August and would be charged to consumers in the current billing month. The tariff increase will be applicable to all consumers except lifeline consumers i.e. 50 units per month.

The regulator had conducted a public hearing on the subject on September 30 and questioned the justification for furnace oil and diesel-based expensive power generation and said that it will announce its judgement after a detailed analysis of record and data as Discos had demanded 98 paisa per unit increase in electricity rates.

Nepra aims to generate Rs7bn additional revenue

In its order issued on Monday, Nepra said prima facie certain efficient power plants were not fully utilised and instead energy from costlier RFO (residual fuel oil) & HSD (high speed diesel) based power plants was generated to the tune of over Rs11.594 billion. This included Rs9.694bn on account of RFO and Rsl.9bn from HSD based power plants during August.

The Authority noted that had this energy been generated from other cheaper sources like RLNG (regasified liquefied natural gas) or coal, this would have resulted in reduction in total fuel cost claimed by the Central Power Purchasing Agency (CPPA).

The regulator had been directing the national power control centre/national transmission & dispatch company (NPCC/NTDC) & CPPA repeatedly to provide complete justification in this regard, to its satisfaction and submit complete details for generation made on RFO/HSD, showing hourly generation along with the financial impact for deviation from economic merit order, if any, and the reasons, thereof.

The order said although the NPCC/NTDC provided details of plants operated on RFO & HSD with reasons thereof regulator’s own in-house analysis workings found the additional impact of operation around Rs6.655bn and hence deiced not to allow the said amount in the fuel cost adjustment until the NPCC/ NTDC and CPPA submit complete details for generation made on RFO & HSD, showing hourly generation along with its financial impact for deviation from EMO.

Published in Dawn, November 10th, 2020