Oct FCA: CPPA-G hints at refunding Rs2.6bn to consumers

ISLAMABAD: Central Power Purchasing Agency- Guaranteed (CPPA-G) on Tuesday hinted refunding Rs 2.6 billion to the consumers of power Distribution Companies (Discos) for the month of October 2024 under monthly Fuel Charges Adjustment (FCA) mechanism

During a public hearing held under the chairmanship of Chairman Nepra, Waseem Mukhtar, the representative of CPPA-G, Naveed Qaisar, stated that FCA variation was recorded at Rs 9.2583 per unit for October 2024 against the set reference of Rs 10.2752 per unit, which implies slashing FCA by Rs 1.0159 per unit, financial impact of which was Rs 10.14 billion.

He further explained that since the FCA variation recovered from the consumers was Rs 1.28 per unit in November 2024, it will be replaced with Rs 1.02 per unit in December 2024, the net benefit of Paisa 26 per unit to be passed on to the consumers, total financial impact of which is calculated at Rs 2.6 billion.

Oct FCA: CPPA-G seeks Rs1.0159/unit negative adjustment

During the hearing, Aamir Sheikh, one of the representatives of business community enquired about previous adjustments of millions of rupees to two sugar mills despite the fact their rates have been reduced to Rs 5.8418 per unit from over Rs 12 billion.

CPPA-G representative stated that actual claims from the baggasse IPPs were shared with Nepra, which will be reviewed in accordance with revised rates.

Deputy Manager Central Power Purchasing Agency-Guaranteed (CPPA-G) Mubashir Hussain briefed the Authority that generation in October 2024 was almost as per the projected generation/ consumption.

He said that generation was 03 per cent higher in October 2024 from projected reference, whereas 6.77 per cent growth was recorded on YoY basis.

However, there was 18 per cent decrease in generation in October 2024 as compared to September 2024. In total, 5.43 per cent decrease in energy generation has been recorded during the current fiscal year.

He noted maximum generation of 19373 MW on October 2, 2024 against 16,968 MW in corresponding month of 2023; and minimum generation on October 5, 2024 was recorded at 10936 MW against 8508 MW on October 17, 2024.

Copyright Business Recorder, 2024