ISLAMABAD: Despite a record 83 per cent power generation from cheaper domestic fuels, the Central Power Purchasing Agency (CPPA) on Tuesday sought a massive Rs4.66 per unit additional fuel cost adjustment (FCA) for ex-Wapda distribution companies (Discos) — almost 100pc higher than target — to generate another Rs34 billion in January 2024.
This increase in FCA is on top of about 26pc increase in annual base tariff and another 18pc hike under the quarterly tariff adjustment currently in place.
As a result, the consumers would be unable to contain their bills despite minimum consumption in peak winter month of January. The National Electric Power Regulatory Authority (Nepra) has accepted the request for a public hearing on Dec 27.
The higher proposed FCA, on the consumption of November, is both because of higher than reference fuel cost resulting in Rs18bn impact (Rs2.4 per unit) and about Rs16bn (Rs2.12 per unit) on account of unspecified past adjustment claims.
In a petition, the CPPA acting as commercial agent of the Discos demanded an additional FCA of Rs4.66 per unit in the billing month of January 2024 for electricity consumed in November.
Hearing fixed for 27th; bulk energy was produced through cheaper fuels
It claimed that reference fuel cost for November stood at Rs4.78 per unit but actual fuel cost came in at Rs9.44 per unit. It said about 7,547 gigawatts hour (GWh) of
electricity were generated at an estimated fuel expenditure of Rs54.1bn (Rs7.17per unit) in November, of which 7,288 GWh were delivered to Discos at Rs68.8bn (Rs9.45 per unit).
This included a hydropower share of 36.5pc in November, up from 32.54pc in October. Hydropower has no fuel cost. The second biggest share came from nuclear power at about 21pc compared to 19pc in October.
The third largest share came from domestic coal at 13pc and with the addition of 6.5pc share from imported coal, the overall coal generation accounted for 19.5pc of total power production.
It was followed by LNG-based generation contributing 10.6pc electricity to the national grid in November compared to its 17pc share in October. Then came the domestic gas-fired electricity with a 9.2pc share, better than 7.4pc in October.
The fuel cost of furnace oil-based power generation increased further to about Rs47 per unit in November when compared to Rs38 per unit in October but this was mainly because of just start-up operations.
The LNG-based power generation cost in November remained unchanged at Rs23.7 per unit while the cost of domestic gas-based generation increased to Rs14.62 per unit against Rs13.6 in October due to a hike in gas prices.
Published in Dawn, December 20th, 2023
