Power consumers to pay Rs1.138/unit extra in December

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Monday allowed power distribution companies, except K-Electric, to charge Rs1.1138/unit extra from power consumers on account of monthly fuel price adjustment for September 2020.

Discos would collect this amount from the power consumers in their December electricity bills. This increase was allowed, as the consumers were charged less in September against what was the cost of power generation. The Central Power Purchasing Agency (CPPA) had submitted a petition on behalf of Discos. It had sought an increase of Rs1.3687/unit, by claiming that the actual pool fuel cost for September 2020 is Rs 4.2097/kWh, against the reference fuel cost component of Rs 2.8410/kWh. But, after the authority held a public hearing on October 29, 2020, it gave them an increase of Rs1.1138/unit and issued an order on Monday.

During the hearing, the authority had observed that, prima facie, certain efficient power plants were not fully utilized and instead, the energy was generated from costlier RFO & HSD-based power plants to the tune of over Rs 10.834 billion (Rs 9.491 billion from RFO and Rs 1.3 billion from HSD-based power plants) during September 2020.

The authority has been directing NPCC/NTDC and CPPA repeatedly to provide complete justification in this regard, to the satisfaction of the authority and submit details for deviation from Economic Merit Order (EMO), showing hourly generation along with the financial impact for deviation from EMO, if any, and the reasons, thereof.

Accordingly, the authority has calculated the fuel cost for the month of September 2020, after accounting for the adjustments, and including costs arising out due to application of various factors, as provided in the respective PPAs of the power producers and claimed by CPPA in its FCA request.

The authority said the amount arising out due to application of PPA factors, for the six RFO-based IPPs, incorporated under the 2002 Power Policy, is being allowed on a provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing suo motu proceedings against RFO-based IPPs.