Discos seek nod for Rs5.62/unit hike in Feb bills

ISLAMABAD: The ex-Wapda distribution companies (XWDiscos) have formally sought approval from the National Electric Power Regulatory Authority (Nepra) to levy an extra Rs5.6194 per unit on consumers in February 2024 bills, citing fuel charges adjustment (FCA) for December 2023.

The Central Power Purchasing Agency (CPPA), on behalf of XWDiscos, has applied with Nepra to raise electricity prices under the December 2023 FCA. Nepra has scheduled a public hearing on January 31 to review this petition.

Notably, of the total demand, these companies also claimed a recovery of Rs5.41 billion (or Rs0.70 per unit) from previous adjustments.

According to the data furnished with the regulatory authority, the CPPA’s report indicates that a total of 7,726 GWh of electricity was generated in December 2023, with an associated cost of Rs78.3 billion (equivalent to Rs10.134 per unit). Moreover, 7,418GWh, originally priced at Rs81.767 billion, was delivered to distribution companies (Discos), while transmission losses stood at 3.51 percent.

Power generation in December 2023 dropped by 8.21 percent against the same month’s generation of 8,418.8 GWh in the previous year. However, over the previous month (November 2023), the generation in the month under review increased by 2.37 percent.

Notably, the generation cost increased by a worrisome 44 percent to Rs10.134 per unit YoY in December 2023 from Rs7.044 per unit in December 2022. Similarly, over the previous month (November 2023, unit cost of Rs 7.17), increased by 41.3 percent.

The per-unit power generation cost from imported coal surged by 18.7 percent in December 2023 to Rs17.2525/unit from Rs14.5305/unit in November 2023. The local cola generation remained uncharged at Rs12.3307/unit.

During the month, the generation cost from nuclear sources increased by 9.03 percent to Rs1.316/unit over the previous month. Similarly, over the corresponding month of last year, the cost of generation in December 2023 from nuclear sources increased by 22.7 percent.

However, generation from nuclear sources over the same month of last year substantially fell 36 percent to 1464Gwh in December 2023 from 2,284.8GWh in December 2022. However, over the previous month’s generation of 1,572GWh, it reduced by 6.9 percent.

Power generation figures reveal a 24.6 percent increase to 1,310 gigawatt-hours (GWh) from local coal and a 21 percent cut to 384 GWh from imported coal in December 2023 compared to the previous month.

In December 2023, the government notably produced less electricity from renewable and cost-effective sources compared to the same month last year. Had these resources been utilised, the costs would have further decreased, benefiting consumers with lower payments.

The petition outlines that in December, the consumers were charged a reference fuel cost of Rs5.4031 per unit, while the actual fuel cost incurred was Rs11.0225 per unit. The CPPA argues that the additional cost burden of Rs5.6194 per unit should be transferred to consumers.