CPPA proposes 45 paisa per unit hike in Discos’ tariffs

MUSHTAQ GHUMMAN

ISLAMABAD: The Central Power Purchasing Agency (CPPA) has proposed a 45 paisa per unit increase in Discos tariffs for March 2018 under monthly fuel price mechanism due to steep increase in furnace oil prices and massive reduction in hydel generation.

The National Electric Power Regulatory Authority (Nepra) will hear a petition filed by the CPPA-G on April 24. The consumers who use above 300 units monthly were being refunded the overcharged amount for a couple of years due to substantial reduction in furnace oil prices.

The CPPA, in its petition said that it has not purchased electricity generated on High Speed Diesel (HSD) in March 2018. The total generation from hydel sources was 872.44 GWh accounting for just 9.98 per cent of total generation. The hydel generation had been reduced after a decline in water releases from Tarbela and Mangla.

The CPPA purchased 1,410.35 GWh electricity produced on Residual Fuel Oil (RFO), 16.14 per cent of total generation, at a cost of Rs 10.83 per unit whereas the cost of electricity generated by using indigenous gas was Rs 4.7544 per unit and its total share in electricity generation was 1860.06 GWh accounting for 21.28 per cent of total generation during the entire month. The electricity generated from RLNG was 2,126.10 GWh making a 24.32 per cent of total generation, at a cost of Rs 8.8538 per unit.

Nuclear power plants delivered 786.18 GWh of electricity at a rate of Rs 1.0432 per unit, cheapest amongst all fuels. The electricity imported from Iran was 42.17 GWh at a price of Rs 11.05 per unit. The 91.09 GWh was generated through baggasse at a cost of Rs 6.1719 and149.25 GWh and 70.88 GWh were purchased from wind and solar respectively.

According to the petition, total energy generated in March 2018 was 8,740.9 GWh at a total price of Rs 53.856 billion. The net electricity delivered to power distribution companies’ was 8, 468.84 GWh at a cost of Rs 60.015 billion. Out of total electricity generation, losses stood at 2.97 per cent.

The CPPA, in its petition has stated that fuel cost for March 2018 has been calculated at Rs 7.0866 per unit against the reference price of Rs 6.6429 per unit. On the basis of data, the CPPA has proposed 44.37 paisa unit increase under monthly fuel adjustment mechanism.