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ISLAMABAD: The Central Power Purchasing Agency- Guaranteed (CPPA-G) has sought an increase of Rs 3.16 per unit in tariffs of power Distribution Companies (Discos) for March 2022, under monthly Fuel Charges Adjustment (FCA) mechanism.

The main reason for the proposed increase in FCA was less generation from hydel resources and gas and higher generation from expensive fuels like coal, RFO, etc.

The impact of approved increase will be passed on all categories of consumers of Discos except lifeline consumers.

The Central Power Purchasing Agency (CPPA-G), in its petition to National Electric Power Regulator Authority (NEPRA), has mentioned the reasons for the proposed increase in tariffs of Discos under FCA.

The regulator will hold a public hearing on April 27, 2022 to seek justification from the officials of CPPA-G, NTDC and other relevant organizations on the proposed raise.

According to the data submitted to Nepra, in March 2022, hydel generation was recorded at 1,704 GWh which constituted 16.35 per cent of total generation in the entire month. Power generation from coal-fired power plants was 2,586.62 GWh (24.83per cent of total generation) at a rate of Rs 12.4 per unit. However, NPCC did not use HSD for electricity generation in March 2022. Generation from RFO was 1,106.2 GWh (10.62cent of total generation) at Rs 22.5214 per unit.

Electricity generation from gas-based power plants was 992.7 GWh (9.53per cent) at Rs 7.7672 per unit. Generation from RLNG was 1,965.68 GWh (18.87per cent of total generation) at Rs 14.3677 per unit.

Electricity generation from nuclear sources was 1,563.66 GWh at Rs 1.00335 per unit (15 per cent of total generation), and the electricity imported from Iran was 42.75 GWh at Rs 17.3565 per unit.

Power generation from different sources (mixed) was 13.22 GWh at a price of Rs 4.8339 per unit, generation from baggasse was recorded at 107 GWh, price of which has been calculated at Rs 5.9822 per unit.

The energy generated from wind was recorded at 276.92 GWh, 1.03 per cent of total generation and solar at 68.73 GWh, 0.66 per cent of total generation in March 2022.

The total energy generated recorded at 10,418.42 GWh, at a basket price of Rs 9.2176 per unit. The total cost of energy was Rs 96.032 billion.

According to the CCPA-G data, net electricity delivered to Discos in March 2022 was 10,078.73 at a rate of Rs9.3869 per unit, total price of which was Rs 94.608 billion.

CPPA-G in its tariff petition maintains that since the reference fuel charges for March 2022 were estimated at Rs 6.2295 per unit, hence an increase of Rs 3.1574 per unit is required for March 2022 under FCA mechanism.

Meanwhile, Power Distribution Companies (Discos) have sought positive adjustment of Rs 41.986 billion on account of capacity charges, transmission charges, market operator free, impact of incremental units, impact of T&D losses on FCA and variable operation and maintenance for second quarter of (October- December) 2021-22 under Quarterly Tariff Adjustment (QTA).

Of the total adjustment of Rs 41.986 billion, Discos have sought positive adjustment of Rs 7.145 billion as capacity charges, negative adjustment of 1.139 billion under variable O&M, Rs 16.318 billion positive adjustment in Use of System Charges (UoSC) and Market Operator’s Free (MOF), Rs 14.033 billion on account of Impact of T&D losses on monthly FCA and Rs 5.628 billion positive impact of incremental units.

According to Discos’ petition, Iesco has sought positive adjustment of Rs 5.336 billion, Lesco, Rs 12.932 billion, Gepco, Rs 4.665 billion, Fesco, Rs 4.117 billion, Mepco Rs 6.524 billion, Pesco, Rs 1.758 billion, Hesco, Rs 2.763 billion, Qesco, Rs 223 million, Sepco, negative Rs 804 million and Tesco, Rs 4.470 billion.

National Electric Power Regulatory Authority will conduct hearing on the requests of Discos on April 28, 2022.

Copyright Business Recorder, 2022

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