ISLAMABAD: Repor­ting a second monthly gro­wth in electricity demand of 6pc over last year, the public sector power companies have sought about 63 paise per unit negative fuel price adjustment (FCA) for November.

If approved, the ex-Wap­da Distribution Comp­anies (Discos) would have to refund about Rs2.5 billion to consumers in Janu­ary. The fuel cost for consumption in November is about Rs2.2 per unit, lower than the same month in 2023.

This will be 5th month in a row that FCAs remain nega­tive mainly because of substantial fuel allowances allowed by the Nati­onal Electric Power Regul­a­tory Authority (Nepra) through a 20pc increase in base tariff effective July 1, 2024. More than 82.3pc – a record — of the total power supply during November flowed from domestic fuel sources, almost half of that at zero fuel cost.

The Central Power Purc­h­asing Agency (CPPA), which filed the petition for negative adjustment of fuel cost for November, said the power consumption was 5.9pc higher than the same month of last year and almost 23pc lower than in October, mainly because of a fall in temperature. It reported that electricity delivered to Discos stood at 7,716 gigawatt hours (Gwh) in November compared to 7,288Gwh in the same month last year.

Nepra convenes hearing on 31st

Another key feature in the petition is about 23.5pc lower fuel cost in Nove­mber over the same month last year, which stems from the substantially higher base tariff for the current year and higher contribution of local fuels.

The power companies have claimed in their petition that the average fuel cost amounted to Rs7.23 per unit in November compared to Rs9.44 per unit in the same month last year.

Nepra has called a public hearing on Dec 31 to take up the petition.

The CPPA said the pow­er companies had charged Rs7.86 per unit in fuel cost in November, which turned out to be Rs7.23 per unit. It sought the application of revised FCA in the January 2025 bill.

It said about 8,032 GWh of electricity was generated at an estimated fuel expenditure of Rs58.49bn (Rs7.28 per unit) in Nov, of which 7,716GWh ene­­­rgy was delivered to Discos at a cost of Rs55.76bn (at Rs7.23 per unit).

The biggest share of total power supply came from hydroelectric at 35.61pc compared to its 36.5pc last year. Hydropower has no fuel cost. The second biggest contribution to the national grid came from nuclear power plants at 20.61pc, followed by local coal at 12.68pc and RLNG at about 11.29pc.

Published in Dawn, December 18th, 2024