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