The cost of generating electricity has increased close to 85% in just one year, going up to Rs6.32 kWh in November 2021 compared to Rs3.42 kWh during the same month last year.
The increase in cost has come mainly due to a rise in cost of furnace oil, coal and Regasified Liquefied Natural Gas (RLNG), according to a note by brokerage house Ismail Iqbal Securities.
Interestingly, the generation mix reveals lower dependence on RLNG in November 2021, with gas and nuclear sources of power stepping up to cover the void.
The note shows a comparison of fuel cost of November 2021 with the corresponding month of 2020, revealing that the price of electricity generated through coal increased by 85% to Rs13.1 kWh in November 2021 as compared to Rs7.1 kWh in November 2020.
The generation cost of RLNG increased by 166% to Rs17.3 kWh from Rs6.5 kWh. Meanwhile, the generation cost of Residual Fuel Oil (RFO) hiked up 72% to Rs20.3 kWh in November 2021 from Rs11.8 kWh in the same month last year.
Meanwhile, power generation in the country went up by 13.4% YoY to 8,482 GWh (11,780 MW) during November 21, compared to 7,479 GWh (10,388 MW) during November 20.
Power generation: Increase in costs leaves consumers high and dry
During 5MFY22, power generation also increased by 9% YoY to 65,568 GWh (17,856 MW) compared with 60,167 GWh (16,385 MW) during 5MFY21.
Hydel was the leading source of power generation, accounting for 33% of the generation mix with 2,816 GWH generated in November 2021, as compared to 2,990 GWh generated in same month last year, showing a decrease of 6%.
Power generation from RFO increased 424% to 145 GWh in November 2021 from 28 GWh in November 2020. Generation from coal improved 26% to 1,379 GWh in November 2021, as compared to 1,095 GWh generated in November 2020.
Additionally, hydel and wind-based generation decreased by 6% YoY and 5% YoY, respectively.
Fuel Component Adjustment: CPPA-G seeks Rs4.33 hike in Discos’ tariffs for Nov
Earlier, the Central Power Purchasing Agency- Guaranteed (CPPA-G) sought an increase of Rs4.33 per unit in tariffs of power Distribution Companies (Discos) for November 2021, under monthly Fuel Component Adjustment (FCA) mechanism, amid higher generation from expensive fuels and previous adjustments.
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