Nepra reserves judgment over petition for Re0.93/unit hike in power tariff


ISLAMABAD- National Electric Power Regulatory Authority (Nepra) has as usual shown concern over the use of expensive furnace oil worth Rs 12 billion for power generation as the regulator reserved judgment over Central Power Purchasing Agency-Guaranteed (CPPA-G) petition for Re0.93 per unit increase in power tariff under monthly Fuel Charge Adjustments (FCA) for January. 

Nepra has conducted public hearing on CPPA’s petition for Fuel Charge Adjustments (FCA) for the month of January 2021, where it had demanded an increase of Re 0.93 per unit in power tariff. The hearing was presided over by chairman NEPRA, Saif ullah Chatta. 

In its petition, CPPA-G maintained that the reference fuel charges for January 2021 were estimated at Rs5.7576 per unit whereas the actual fuel charges were Rs 6.6846 per unit, hence an increase of Rs0.9272 per unit had been sought under monthly fuel price adjustment mechanism.

During hearing, as usual chairman Nepra showed concern over the use of furnace oil worth Rs 12 billon in January for power generation. 

The regulator noted that instead of the demanded Re 0.9272 per unit increase in tariff, the actual raise will be Re 0.90 per unit and it will have an impact of Rs 6.9 billion over the power consumers.  In its petition, Central Power Purchasing Agency-Guaranteed (CPPA-G) had sought an increase of Re 0.9272 per unit in tariffs of Discos for January 2021 under monthly fuel price adjustment mechanism.

According to the data submitted to Nepra, the CPPA-G revealed net electricity delivered to Discos in January, 2021 was 7,728.26/GWh at a rate of Rs 6.6846 per unit, total price of which was Rs 51.660 billion.

In January, hydel generation was recorded at 1,067 GWh which constituted 13.2 per cent of total generation in the entire month. Power generation from coal-fired power plants was 2,559 GWh (31.68 per cent of total generation) at the rate of Rs 6.47 per unit, RFO- 974 GWh (12 per cent of total generation) at a tariff of Rs 12.3460 per unit. NPCC also generated 46 GWh from HSD at Rs 19 per unit.

Electricity generation from gas-based power plants was 1,333.80 GWh (16.751 per cent of total generation) at a cost of Rs 7.6191 per unit, RLNG – 916.42 GWh (11.34 per cent of total generation) at Rs 8.3184 per unit, nuclear – 853 GWh at Rs 1.0075 per unit and electricity imported from Iran 31.65 GWh at Rs 9.8088 per unit. The price of mixed generation, ie, from different sources was 1.06 GWh at a rate of Rs 5.0479 per unit whereas electricity produced from baggasse was 95.89 GWh at Rs 5.9822 per unit. The energy generated from wind was recorded at 152.57 GWh, 1.89 per cent of total generation and solar at 47 GWh, 0.59 per cent of total generation in January.

The total energy generated was recorded at 8,079 GWh in January at a basket price of Rs 6.0640 per unit. The total cost of energy was Rs 47.990 billion. CPPA-G had also sought previous adjustment of Rs 3.311 billion which constitutes Rs 0.41 per unit. The sale to IPPs was reduced by 24.42 GWh, the price of which was Rs 641 million (Rs 0.0599 per unit) while cost of reduced transmission losses was Rs 326.14 3 million or Rs 0.2707 per unit. Nepra has reserved its judgment on the petition.

 

Fuel Charge Adjustments for January





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