Discos’ consumers to get relief: CPPA-G seeks 22 paisa/unit positive adjustment in Aug FCA

ISLAMABAD: The consumers of Distribution Companies (Discos) would have relief in their bills as the Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought paisa 22 per unit positive adjustment in FCA for August 2022 mainly due to higher generation from hydel resources and official policy of at least two hours loadshedding across the country.

However, the overall increase in bills of August 2022 is estimated to be about Rs 4 per unit, which includes pending increase of Rs 3.50 per unit in base tariff and a positive adjustment in QTA of last quarter of FY 2021-22.

The proposed positive adjustment of Paisa 22 per unit in FCA in August is far less than positive adjustments

of Rs 7.90 per unit in May, Rs 9.90 per unit in June and Rs 4.35 per unit in July 2022, coupled with Rs 3.50 per unit in base tariff (first installment of Rs 7.90 per unit in base tariff) and QTA.

National Electric Power Regulator Authority (Nepra) will hold a public hearing on September 29, 2022 on CPPA-G’s request of adjustment in Discos’ tariffs.

According to data submitted to Nepra, in August 2022, hydel generation was 5,353.69 GWh constituting 38.10 per cent of total generation. Power generation from coal-fired power plants was 2,163.01 GWh in August 2022 which was 15.39 per cent of total generation at a price of Rs 20.5441 per unit as prices of imported coal have increased manifold. However, the National Power Control Centre (NPCC) has not used High-Speed Diesel (HSD) in August.

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Generation from RFO was 1,021.38 GWh in August (7.27 percent of total generation) at Rs 35.6145 per unit as compared to 876.92 GWh (6.20 per cent of total generation) at a price of Rs 35.6984 per unit.

Electricity generation from gas-based power plants was 1,315.21 GWh, 9.36 per cent of total generation at a cost of Rs 10.4930 per unit in August 2022 as compared to 1,466. 41 GWh (14.603 percent) at Rs 9.9585 per unit in July. Generation from RLNG was 1,755.79 GWh (12.49 per cent of total generation) at Rs 24.7199 per unit in August as compared to 2,119.55 GWh (14.98 per cent of total generation) at Rs 28.2899 per unit in July.

Electricity generation from nuclear sources was reduced to 1,873.98 GWh in August due to intrusion of trash in K-2 at Rs 1.0194 per unit (13.34 per cent of total generation) in July 2022, and electricity imported from Iran was 54.47 GWh at Rs 20.9570 per unit. Nepra is approving the cost provisionally because the agreement between Pakistan and Iran has expired.

Power generation from different sources (mixed) was 17.92 GWh at a price of Rs 4.7544 per unit, generation from baggasse recorded at 33.13 GWh price which has been calculated at Rs 5.9822 per unit.

The energy generated from wind was recorded at 390.71 GWh, 2.78 per cent of total generation and solar at 73.44 GWh, 0.52 per cent of total generation in August 2022.

The total energy generated recorded at 14,052.59 91 GWh, at a basket price of Rs 10.0587 per unit. The total cost of energy was Rs 141.351 billion.

The CPPA-G has sought refund of previous adjustment/supplemental charges of over Rs 1.845 billion, FCA cost of which has been calculated at negative Paisa 13 per unit. The sale to IPPs was also reduced by 30.88 GWh, the price of which was negative Rs 1.582 billion at Paisa 51.2456 per unit while transmission losses recorded at 381.86 GWh, price of which was Rs 0.2754 per unit.

According to the CCPA-G data, net electricity delivered to Discos in August 2022 was 13,638.75 GWh at a rate of Rs 10.1126 per unit, total price of which was Rs 137.924 billion.

The CPPA-G in its tariff adjustment request maintains that since the reference fuel charges for August 2022 were estimated at Rs 9.9834 per unit already built in proposed FCA whereas the actual fuel charges were Rs 10.9833 per unit hence an increase of paisa 21.92 per unit has been sought for the month under FCA mechanism.

Copyright Business Recorder, 2022