Power firms get 64-paisa tariff hike for February

Published April 8, 2021
The increase was allowed on account of monthly fuel cost adjustment (FCA) for electricity consumed in February. — Reuters/File
The increase was allowed on account of monthly fuel cost adjustment (FCA) for electricity consumed in February. — Reuters/File

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday notified about 64 paisa per unit increase in electricity rates for ex-Wapda distribution companies (Discos) to generate about Rs4.4 billion additional revenue for the troubled power sector.

The increase was allowed on account of monthly fuel cost adjustment (FCA) for electricity consumed in February. This would be charged to consumers in the current billing month. The tariff increase will be applicable to all consumers except lifeline consumers ie 50 units per month. This FCA is also not applicable to K-Electric consumers.

Not applicable to lifeline and K-Electric consumers

The regulator had conducted the public hearing on the subject on March 30. The Discos had demanded about 66 paisa per unit increase on account of higher generation cost in February with expected revenue of Rs4.5bn. It said the power companies had charged pre-determined fuel cost of Rs4.14 per unit but actual cost of generation later worked out at Rs4.80 per unit, therefore the need for 66 paisa per unit additional charge.

However, after various adjustments and disallowed claims, Nepra worked out an increase of about 64 paisa per unit in FCA. The additional charge will remain applicable for one month. The regulator worked out actual fuel cost at Rs4.78 per unit in February.

Under the tariff mechanism, changes in fuel cost are passed on to consumers on a monthly basis through automatic mechanism while QTAs on account of variation in power purchase price (PPP), capacity charges, variable operation and maintenance costs, use of system charges and including impact of transmission and distribution losses are built in the base tariff by the federal government.

Total energy generation from all sources in February was recorded at 7,281 gigawatt hour (GWh) at a total fuel cost of Rs44bn at the rate of Rs4.7 per unit. After accounting for 3.9pc transmission losses, about 6,996 GWh energy was delivered to Discos at Rs33.5bn at the rate of Rs4.8 per unit.

Published in Dawn, April 8th, 2021

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