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ISLAMABAD: The Central Power Purchasing Agency- Guaranteed (CPPA-G) has sought an increase of Rs 3.12 per unit in tariffs of power Distribution Companies (Discos) for December 2021, under monthly Fuel Component Adjustment (FCA) mechanism, as generation from coal has overtaken hydel generation in terms of both units and cost.

The main reason, according to CPPA-G, for the proposed increase in FCA was higher generation from expensive fuels and previous adjustments. The impact of the approved increase will be passed on to all categories of consumers of Discos except lifeline consumers. It will also affect KE consumers to the extent of 1100-1300MW being purchased from national grid.

The regulator will hold a public hearing on February 1, 2022 to seek justification from CPPA-G, NTDC and other relevant organizations on the proposed raise. According to the data submitted to Nepra, in December 2021, hydel generation reduced to 1,769Gwh due to annual canal closure from 2,816.49GWh in November 2021, constituting 20.04 percent as compared to 33.21 percent of total generation in the entire month of November.

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

Nepra team has not mentioned average cost of hydel generation despite the fact that the Authority has repeatedly directed it to include it in the FCA figures. Power generation from coal-fired power plants was 2,104Gwh in December against 1,379GWh in November showing almost 53 percent increase during the entire month.

This also shows that coal generation was 23.83 percent of total generation in December 2021 as compared to 16.26 percent in November. The price of coal generation was Rs13.3122 per unit in December 2021.

Generation from HSD was recorded at 251GWh (2.84 percent) at Rs14.0862 per unit. Generation from RFO was 353GWh (4 percent of total generation) was at Rs22.2446 per unit.

Copyright Business Recorder, 2022

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