Consumers to Pay Extra Rs 4.7 Per Unit for October Electricity Consumption – Business

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday officially allowed ex-Wapda distribution companies (Discos) to charge their consumers an additional fuel cost of Rs 4.74 per unit during the current billing month to mop up about Rs 60 billion of additional funds.

“The adjustment of an increase of Rs4.7446/kWh will be applicable to all categories of consumers except vital consumers of all XWDISCOs,” reads a notice issued by Nepra. The adjustment, he added, should be shown separately in consumer bills based on units billed in the month of October 2021.

The regulator said it observed that at first glance, some efficient power plants were not fully utilized and instead power from more expensive RFO/HSD-based power plants was generated to the tune of more of 27.521 billion rupees in October. The regulator said it also noted a breach of economic order, reviewed the evidence and deducted 63.4 million rupees as such on a provisional basis.

The Central Power Purchasing Agency (CPPA) had demanded that Discos be allowed to charge 4.75 rupees per unit of additional fuel cost to consumers to raise 61 billion rupees next month. He said Discos charged a benchmark fuel cost of Rs 5.173 per unit to consumers in October but the actual fuel cost turned out to be Rs 9.93, an increase of 58%.

Therefore, an additional cost of Rs 4.75 per unit should be charged to consumers. After some adjustments, Nepra calculated an additional fuel cost at Rs4.74 per unit.

Furnace oil-based generation amounted to around 11% of total electricity supply compared to just 0.2% estimated in the benchmark price for October, as some coal-fired power plants, including Hub Power, were out of order for more than six months and, as a result, coal-based generation continued. at 15pc of total production instead of 25pc projected as a reference price.

It was reported that an unfavorable production mix resulted in an increase in fuel cost of Rs 44 billion over estimates, while the rest was due to rising international fuel prices. Power generation was nearly 18% higher in October 2021 than the baseline estimate and 11% higher than the same month last year.

It was reported that the share of cheap hydropower in overall power generation was slightly lower than estimated, but an increase in the prices of imported fuels – coal, LNG and fuel oil – had imposed an additional burden on consumers. The higher electricity rates would be recovered from all consumers this month except those using less than 50 units per month.

The share of hydraulic supply stood at 23.26pc in October instead of 25.48pc estimated at the reference tariff. However, hydro was significantly lower at 36.24% in September, 35% in August and had no fuel costs. On the other hand, the contribution of electricity based on LNG stood at 23.93 pc in October against an estimated 25.4 pc. However, it was above 18.9% in September and 18% in August.

The CPPA said total power generation from all sources in October stood at 11,296 gigawatt hours at a cost of 105.06 billion rupees or 9.3 rupees per unit. Of this total, around 10.98 GWh was delivered to Discos at Rs109bn, at an average rate of Rs9.93 per unit.

Electricity production from oil-fired power stations stood at 11 pc in October against 7.1 pc in September and 10.12 pc in August. The share of RLNG-based electricity generation in the national grid was around 24% in October compared to 19% in September and 18% in August. The share of local gas-based production increased slightly to 9.67 pc in October, against 8.9 pc in September and 8.17 pc in August. On the other hand, the share of nuclear increased to 12.33 pc in October against 9.13 pc in September and 10 pc in August.

The cost of coal fuel also increased to 11.37 rupees per unit in October from 10.1 rupees in September and 9 rupees in August. The cost of nuclear fuel stood at Rs 1.01 per unit in October compared to Rs 98 paisa in September. Electricity generated from local gas fell slightly to Rs7.8 per unit from Rs8.3 in September. Furnace oil production was Rs21.3 per unit and RLNG at Rs16.75 per unit.

Posted in Dawn, December 10, 2021

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