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ISLAMABAD: The Central Power Purchasing Agency (CPPA) has attributed low utilisation of electricity in winter and power generation through expensive RLNG for Rs4.66 per unit increase in FCA cost during the month of November 2023, which would have an impact of Rs33.9 billion on consumers.

As the hearing on a request of Rs4.66 per unit FCA increase by CPPA started on Wednesday under the Chairman Nepra Waseem Mukhtar, the members of the authority expressed their concern over increasing FCA in the winter as opposed to previous years’ fuel cost adjustment.

Chairman Nepra stated that fuel cost adjustment (FCA) is increasing in the winter this year compared to previous years. He added the negative growth in electricity consumption is now being reflected in the FCA.

Some members also wanted to know as to why when electricity demand is relatively low, expensive power plants are being run for power generation.

CPPA seeks Rs4.66 per unit FCA for XW Discos

The CPPA said that in November 2023, electricity production was 13 per cent less against reference generation for November 2023, which was also one of the factors for higher FCA.

The total impact of FCA would be Rs33.9 billion without GST. The CPPA FCA has requested in FCA Rs2.54 previous adjustment and Rs2.12 FCA.

The regulator added that in the summer the demand remains at the peak and both expensive and cheaper power plants are made operational to meet the demand but this was not done in the winter. Chairman Nepra has sought detailed data from CPPA on demand side by December 2023, as well as, next quarters’ tariff adjustment.

On the issue of over-billing, the authority stated that show-cause notices have been issued to Discos found to be over-billing.

The authority added that the over-billing had happened in past, as well and the authority made sure that consumers got their money returned. Consumers will also be protected this time, as well, added Nepra.

The CPPA in a presentation informed the authority that in November 2023, hydel generation was 2.75 bkWh constituting 36.50 per cent of total generation, power generation from local coal was 0.99bkWh in November 2023 which was 15.27 in the mix at a price of Rs15.2 per unit and coal imported 0.49bkWh, 13 percent of the generation mix at Rs14.53 per unit.

Electricity generation from gas-based power plants was 0.69bkWh (9.1per cent in the generation mix) at Rs14.62 per unit, generation from RLNG was 0,80 bkWh (10.5 per cent of total generation) at costing Rs23.72 per unit.

Electricity generation from nuclear sources was 1.57 bkWh, at Rs1.21 per unit (20.83 per cent of total generation), and electricity imported from Iran was 0.03 bkWh at Rs27.7281 per unit (0.4 per cent of the total generation. Power generation from wind was 0.15 bkWh, 1.9 percent in the total generation. Solar power was 0.08 bkWh one per cent in the generation mix and from baggasse 0.03 bkWh at price Rs5.98 which is 0.4 percent of the generation mix.

The Nepra has completed the hearing on the CPPA’s request for an increase of Rs4.66 per unit in the price of electricity on account of FCA and it will issue a decision after reviewing the data.

Copyright Business Recorder, 2023


Comments are closed.

Dabeer Razvi Dec 28, 2023 11:36am
Unfortunately, extremely mismanaged sector. We are without electricity today. Every week we are having one day as load shedding in Lahore and still they want to charge for non utilizing. Mind boggling. Please carry out structural changes and save the common citizen from injustices of Power Sector.
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Twain pen di Dec 28, 2023 12:39pm
idiots are running the management, they want the public to pay for their stupidities and mismanagement.
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Charlie Dec 28, 2023 01:41pm
Practically no reforms, just shifting load on already paying consumers. Freeloaders still getting benefits. Only solution is uniform price across the board, it's not food but a luxury.
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Aam Aadmi Dec 28, 2023 05:07pm
CPPA seems to have lost its senses. The area I live in, in the twin cities, has regular loadshedding , stretching sometimes to 8 hours continuously. This happens every day. There is not a single day when power supply was uninterrupted. They make the people suffer through loadshedding in order to conserve energy and to supply it to the sectors inhabited by the powerful and the influential. Interestingly, these WAPDA and DISCO employees, all 'muft khoras' have no qualms to admit their luxuries. By the way, do these CPPA employees pay their electricity bills? May be not.
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