ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Tuesday notified negative fuel cost adjustment (FCA) of 76 paise per unit for ex-Wapda distribution companies (Discos) and 49 paise for consumers of K-Electric in January’s bills.

The refunds were approved for Discos’ consumers for November and KE’s users in October.

The KE had proposed a 27-paisa per unit refund for October consumption, which was increased to 49-paisa by the regulator. On the other hand, Discos had proposed a 63-paisa refund, which was increased to 76-paisa.

Utilities incur fuel charge adjustments due to global fuel price variations and generation mix changes. The notification said the negative FCA would apply to all consumer categories except domestic consumers below 300 units monthly consumption, prepaid metering consumers and electric vehicle charging stations (EVCS).

Orders probe into Lahore North Line delay

The adjustment on account of monthly FCA also applies to domestic consumers having Time of Use (ToU) meters irrespective of their consumption level.

Probe against NTDC ordered

In its order, Nepra also put on record that the utilisation of the High Voltage Direct Current (HVDC) transmission line from Matiari-Sindh to Lahore in Punjab was around 20pc and noted that timely completion of the Lahore North line would have resulted in higher utilisation of HVDC line by around 300MW which may have benefited the consumers, favourably.

Therefore, it has decided to initiate an investigation against the National Transmission and Despatch Company (NTDC) regarding a delay in completing the Lahore North Line. The regulator also expressed concern over the upward trend in Part Load Adjustment Charges (PLAC). The Nepra “noted a persistent upward trend in PLAC, which increased from Rs18.703bn in 2019-20 to Rs55.671bn in 2023-24” and observed that the System Operator (SO) and Power Purchaser must remain proactive in monitoring load patterns across different seasons and times of the day.

In coordination with SO, the CPPAG should propose strategies, including the optimisation of Time of Use (TOU) rates and timings, to ensure more efficient resource utilisation. This can better balance the system, reducing the need for inefficient operation of power plants at part load, and ultimately lowering PLAC costs.

The regulator also expressed concern that the Energy Purchase Price (EPP) for Thar Coal Block-I Power Generation Company (Pvt) Limited, a plant operating on local Thar coal, stood at Rs21.93 per unit. In contrast, Port Qasim’s EPP on imported coal remained at Rs15.74 per unit. “This was primarily due to the lower utilisation of Thar coal power plants.

It said that EPP for Thar coal power plants includes fuel costs and variable O&M expenses and incorporates the fixed costs associated with the coal mines. These fixed costs contribute to a higher per-unit EPP when the plants operate at part load. Conversely, increased plant utilisation enables a more efficient distribution of these fixed costs, reducing the per-unit EPP.

Published in Dawn, January 8th, 2025