Discos allowed 50.66-paisa power tariff raise

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed Distribution Companies (Discos) to increase power tariff by 50.66 paisa per unit for June 2018 across the board except lifeline consumers under monthly fuel price adjustment mechanism.

The decision was taken at a public hearing presided over by Chairman Nepra, Brig Tariq Saddozai (retired) on a revised tariff petition of Central Power Purchasing Agency- Guaranteed (CPPA-G) which initially had sought 71 paisa per unit increase.

The total financial burden to be passed on to consumers has been calculated at Rs 6.5 billion

According to Nepra’s tariff team actual fuel charge component in June 2018 was Rs 5.4992 per unit against reference fuel charge component of Rs 4.9927 per unit, showing a difference of Rs 0.5566 per unit.

CPPA-G had claimed Rs 5.755 billion for Sahiwal coal-fired power plant owing to difference in rates approved by the Authority and claimed by CCPA-G from May 2017 to May 2018. However, Nepra’s team calculated actual amount of Rs 3.249 billion while working out FCA of June 2018.

The price of furnace oil has increased by 41 per cent to Rs 64, 324 per MT on June 16, 2018 as compared to Rs 45,523 per MT as on December 01, 2017.

As the notified determination of July 2017, NTDCL has allowed T&T losses of 2.80 per cent only at 500 KV and 220 KV network. CPPA-G had claimed losses of 2.41 per cent losses whereas data provided by NTDCL shows T&T losses of 303.50 GWh, ie, 2.75 per cent which are within allowed threshold of 2.80 per cent.

The CPPA, in its petition said that it has purchased 3.99 GWh electricity generated on High Speed Diesel (HSD) in June 2018 at a cost of Rs 11.7631 per unit. The total generation from hydel sources was 3,589 GWh accounting for just 278 per cent of total generation.

The CPPA purchased 1,162.5 GWh electricity produced on Residual Fuel Oil (RFO), nine per cent of total generation at a cost of Rs 13.1236 per unit whereas the cost of electricity generated by using indigenous gas was Rs 4.7141 per unit and its total share in electricity generation was 2,026 GWh accounting for 15.69 per cent of total generation during the entire month. The electricity generated from RLNG was 3,252.28 GWh making it 25.18 per cent of total generation at a cost of Rs 9.3116 per unit. The coal-fired power generation was 1,522.47 GWh, 11.9 per cent of total generation at a cost of Rs 5.7587 per unit.

Nuclear power plants generated 656 GWh electricity at Rs 0.9295 per unit, the cheapest compared to all fuels. The electricity imported from Iran was 52.89 GWh at a price of Rs 11.57 per unit. The 109.25 GWh was generated through baggasse at a cost of Rs 6.1861 and 427.29 GWh and 57.05 GWh was purchased from wind and solar respectively.

According to the petition, total energy generated in June 2018 was 12,913.86 GWh at a total price of Rs 66.1788 billion. The net electricity delivered to power distribution companies’ was 9,877.93 GWh at a cost of Rs 61.983 billion and tariff Rs 5.1246 per unit. Out of total electricity generation, losses stood at 2.36 per cent (305 GWh) at a cost of Rs 0.1383 per unit.

The data shows that 12,600.30 GWh electricity was delivered to Discos which is 97.57 per cent of total generation at a total cost of Rs 71.758 billion. CPPA has calculated a tariff of Rs 5.6949 per unit for June 2018 based on all generation sources. CPPA-G has also sought Rs 5.657 billion in the name of previous adjustment/supplemental charges.—MUSHTAQ GHUMMAN