Power tariff hiked by Rs3.10 per unit for Dec 2021

KARACHI: The National Electric Power Regulatory Authority (Nepra) on Saturday approved Rs3.10 per unit increase in power tariff for December 2021 under monthly fuel cost adjustment (FCA) mechanism.The authority held a public hearing into the petition filed by Central Power Purchasing Agency (CPPA) on February 1.

The CPPA sought Rs3.12 per unit increase in power tariff for December. The increase would be applicable to all consumers of power distribution consumers (Discos) except lifeline consumer, said a notification. It will not however be applicable to K Electric. The increase would for only one month and would be recovered with billing of February. It is pertinent to mention here that FCA for November was Rs4.30 per unit which had already been charged in January.

According to the notification, authority also observed that an in-house analysis had also been carried out, to work out the financial impact of this move. As per in-house analysis/workings carried out, it has been noted that around 353.26 GWII were generated from RFO and 250.56 G'Wh were generated using HSD during the month of December 2021, whereas the capacities of RLNG, Coal and Gas based efficient power plants were underutilized. The net amount deductible, on provisional basis, from the overall claim due to deviation from EMO due to underutilization of efficient power plants works out as around Rs4.81 million. The authority has decided to deduct this amount provisionally in the instant FCA, until NPCC/NTDC and CPPA-G provide the required details along with complete justification in this regard to the satisfaction of the Authority.

In view of the above discussion, the authority has calculated the fuel cost for the month of December 2021, after accounting for the aforementioned 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-G in its FCA request. The amount arising out due to application of PPA factors, for the six RFO based IPPs, incorporated under 2002 Power Policy, is being allowed on provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing suo moto proceedings against RFO based IPPs. NTDCL, reported provisional T&T losses of 245.44 GWh based on energy delivered on NTDCL system during December 2021. NTDC in addition also reported T&T losses of 23.215 GWh for PMLTC (HVDC) line. NTDCL is allowed T&T losses of 2.80% only at 500KV and 220 KV network, while PMLTC (HVDC) is allowed T&T losses of maximum up-to 4.3%. 22.

Accordingly, for the month of December 2021, T&T losses of 243.57 GWh have been verified for NTDCL system based on unites delivered only at 500KV and 220 KV network. Regarding PMLTC (HVDC), the claimed T&T losses i.e. 23.215 GWh i.e. 2.65 percent, being within the authority's allowed limit have also considered while working out the FCA of December 2021. The prices of petroleum products (POL) are expected to witness an increase in the next half of the ongoing month as crude oil rates have gone up in the international market, sources said on Saturday.

The sources said the price of petrol might move past the Rs150 per litre mark for the first time in history, as the rising international market rates might prompt the government to increase the price of petrol by Rs13 per litre. The sources added that the price of diesel might go up by Rs18 from February 16.Last month, the government decided against increasing the prices of petroleum products for the first 15 days of February. At the time, Special Assistant to the Prime Minister on Political Communication Shahbaz Gill had tweeted: "The prime minister did not approve the summary of increasing petrol price by Rs11 and diesel by Rs14."Currently, petrol is being sold in the county at Rs147.83 per litre, high-speed diesel (HSD) at Rs144.62 and light diesel oil (LDO) at Rs114.54 per litre in the country.

Meanwhile, PMLN President Shehbaz Sharif rejected the decision to increase the price of electricity by Rs3.10 per unit. He said Imran Niazi should resign instead of snatching people's lives due to inflation and his incompetence was proved during the last four years. The opposition leader in the National Assembly said people could not get any relief from the government but faced a series of troubles.

Meanwhile, PPP Parliamentary leader in the Senate Senator Sherry Rehman expressed concern over the rising circular debt of the power sector and increase in electricity tariffs, while terming it worrisome, saying that with an increase of Rs 3 per unit, over billions of rupees will be collected from poor consumer class. “In the last three years, this government has increased power prices by more than 52%, yet circular debt is increasing,” she said while criticizing the government for hike in power tariffs. “The PTI had claimed in its manifesto to abolish circular debt, but during its tenure, circular debt increased by Rs. 1328 billion and now reached Rs 2.7 trillion. “

She said: "The circular debt has increased by 116 per cent. The Tabahi Sarkar is increasing the circular debt by Rs33 billion every month and the power consumers were paying the price for the incompetence of the PTI government.”