ISLAMABAD: Amid a 3.3 per cent decline in electricity consumption in February over the last year, the public sector power distribution companies (Discos) have sought only 30 paise per unit negative fuel price adjustment (FCA) despite 84pc supplies coming from cheaper domestic sources.

If approved, the ex-Wapda Distribution Companies (Disco) would have to refund about Rs2 billion to consumers in April.

The decline in fuel cost is mainly because of substantially higher costs allowed by the National Electric Power Regulatory Authority (Nepra) through a 20pc increase in base tariff effective July 1, 2024. About 84pc of the total power supply during February came from domestic fuel sources, almost 31pc of that at zero fuel cost.

The Central Power Purchasing Agency (CPPA) said the power consumption fell 3.3pc year-on-year and 14pc month-on-month in February. It reported that electricity delivered to Discos stood at 6,666 gigawatt hours (Gwh) compared to 7,816 Gwh in January and 6,76Gwh in February 2024.

84pc electricity generated from local resources

The power companies have claimed in their petitions that the average fuel cost amounted to Rs8.23 per unit in February compared to Rs9.4 per unit in the same month last year.

Nepra has called a public hearing on March 26 to take up a petition filed by the CPPA — a subsidiary of the Power Division — seeking “a decrease of Rs0.2984/kWh over the reference fuel charge of Rs8.5276 per unit”. The CPPA said the actual fuel cost was Rs8.23 per unit. It sought an application for a revised FCA in April’s bills.

It said about 6,945 GWh electricity was generated at an estimated fuel expenditure of Rs52.58bn (Rs7.57 per unit) in February, of which 6,666GWh energy was delivered to Discos at a cost of Rs54.86bn (at Rs8.23 per unit).

Hydropower regained its top position with over 27pc share in the overall grid as annual canal maintenance came to an end at the close of January. Nuclear energy stood second in electricity supply to the national grid with 26.6pc share.

The third biggest share in the national grid came from local coal at 15.02pc, followed by RLNG at 14pc. This was followed by 10.32pc share from local local gas. Imported coal contributed only 1.56pc to the national grid as demand dropped with lower temperatures.

The LNG-based power generation was the most expensive, with its cost in February reported at Rs22.35 per unit, followed by Rs18.90 per unit from imported coal and Rs13.78 per unit on local coal.

On the other hand, the cost of local gas-based generation slightly increased to Rs13.36 per unit in February compared to Rs13.21 per unit in January.

Published in Dawn, March 15th, 2025