Fuel Component Adjustment: CPPA-G seeks Rs4.33 hike in Discos’ tariffs for Nov

ISLAMABAD: The Central Power Purchasing Agency- Guaranteed (CPPA-G) has sought an increase of Rs 4.33 per unit in tariffs of power Distribution Companies (Discos) for November 2021, under monthly Fuel Component Adjustment (FCA) mechanism. The main reason for the proposed increase in FCA was higher generation from expensive fuels and previous adjustments.

The impact of approved increase will be passed on all categories of consumers of Discos except lifeline consumers. It will also affect, KE consumers, to the extent of 1100-1300 MW being purchased from national grid. The Central Power Purchasing Agency (CPPA-G), in its petition to National Electric Power Regulator Authority (NEPRA) has mentioned the reasons of proposed increase in tariffs of Discos under FCA.

The regulator will hold a public hearing on December 29, 2021 to seek justification from the officials of CPPA-G, NTDC and other relevant organizations on the proposed raise. The hearing on KE’s request will be held on December 2, 2021. According to the data submitted to Nepra, in November 2021, hydel generation recorded at 2,816.49 GWh which constituted 33.21 per cent of total generation in the entire month. Power generation from coal-fired power plants was 1,379 GWh (16.26 per cent of total generation) at a rate of Rs 13.14 per unit. Generation from HSD was recorded at 25 GWh (0.29 per cent) at Rs 27.20 per unit. Generation from RFO was 145.4 GWh (1.71 cent of total generation) at Rs 20.27 per unit.

Power tariff raise under FCA imminent

Electricity generation from gas-based power plants was 1,093 GWh (12.89 per cent) at Rs 7.8643 per unit. Generation from RLNG was 1,208.70GWh (14.25 per cent of total generation) at Rs 17.2861 per unit. Electricity generation from nuclear sources was 1,485 GWh at Rs 1.0239 per unit (17.51 per cent of total generation), and electricity imported from Iran was 36.69 GWh at Rs 13.1753 per unit.

Power generation from different sources (mixed) was 11.84 GWh at a price of Rs 4.4607 per unit, generation from bagasse recorded at 54.36 GWh price of which has been calculated at Rs 5.9789 per unit. The energy generated from wind was recorded at 175 GWh, 2.07 per cent of total generation and solar at 50.62 GWh, 0.60 per cent of total generation in November 2021. The total energy generated recorded at 8,481.74 GWh, at a basket price of Rs 6.3227 per unit. The total cost of energy was Rs 153.627 billion.

CPPA-G also sought previous adjustment/ supplemental charges of over Rs 13.585 billion. The sale to IPPs was also reduced by 28.35 GWh, the price of which was Rs 687 million (Paisa 24.2317 per unit) while the reduction in transmission losses was recorded at 210.99 GWh, at a price of Paisa 0.2014 per unit.

According to the CCPA-G data, net electricity delivered to Discos in November 2021 was 8,242.40 GWh at a rate of Rs 8.0710 per unit, total price of which was Rs 66.525 billion.

CPPA-G in its tariff petition maintains that since the reference fuel charges for November 2021 were estimated at Rs 3.7381 per unit whereas the actual fuel charges were Rs 8.0710 per unit including supplemental charges of Rs 13.585 billion, hence an increase of Rs 4.3329 per unit has been sought for the for November 2021 under FCA mechanism.

Copyright Business Recorder, 2021