Discos tariffs: Rs2.07/unit rise sought for August

Islamabad: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought an increase of Rs 2.07 per unit in tariffs of Distribution Companies (Discos) for August 2021 under monthly FCA mechanism.

National Electric Power Regulatory Authority (Nepra) will hear the request of CPPA-G on September 30, 2021. The main reason for the increase in FCA was generation from expensive fuels. According to the data submitted to Nepra, in August 2021, hydel generation recorded at 5,594.30 GWh which constituted 34.79 percent of total generation in the entire month. Power generation from coal-fired power plants was 2,293.83 GWh (14.27 percent of total generation) at a rate of Rs 9.0322 per unit, whereas generation from HSD was recorded at 19.84 GWh (0.12 percent) at Rs 22.6251 per unit. Generation from RFO was 1,627.56 GWh (10.12 percent of total generation) at Rs 18.2803 per unit.

Electricity generation from gas-based power plants was 1,313.21 GWh (8.17 percent) at Rs 8.3082 per unit, RLNG- 2,895.92 GWh (18 percent of total generation) at Rs 13.4401 per unit, nuclear - 1,630 GWh at Re 0.9986 per unit (10.14 percent of total generation), and electricity imported from Iran was 45.24 GWh at Rs 12.3557 per unit. Power generation from different sources (mixed) was 16.98 GWh at a price of Rs 4.6705 per unit, generation from baggasse recorded at 24 GWh at Rs 5.9822 per unit. The energy generated from wind was recorded at 549.95 GWh, 3.24 percent of total generation and solar at 67 GWh, 0.42 percent of total generation in August 2021.

Discos seek substantial raise in tariffs

The total energy generated recorded at 15,679.72 GWh, at a basket price of Rs 6.4653 per unit. The total cost of energy was Rs 103 billion. CPPA-G also sought previous adjustment/supplemental charges of Rs 3.283 billion against use of power of 7.48 GWh. The sale to IPPs was reduced by 15.82 GWh, the price of which was Rs 279 million while the reduction in transmission losses was recorded at 476.63 GWh, cost of which is Re 0.20 per unit.

According to the CCPA-G data, net electricity delivered to Discos in August 2021 was 15,590.87 GWh at a rate of Rs 6.8053 per unit, total price of which was Rs 106.100 billion. CPPA-G in its tariff petition has maintained that since the reference fuel charges for August 2021 were estimated at Rs 4.7334 per unit whereas the actual fuel charges were Rs 6.8053 per unit, hence Nepra should allow it an increase of Rs 2.0719 per unit for August 2021.

Copyright Business Recorder, 2021