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Wednesday February 21, 2024

Nepra notifies fuel adjustment charges for KE, other power firms

According to a petition filed by KE, the calculation for the month of March was based on Central Power Purchasing Agency – (CPPA-G) invoice for February 2022 and was subject to adjustments based on Nepra’s decision

April 28, 2022
NEPRA. Photo: The News/File
NEPRA. Photo: The News/File

KARACHI: National Electric Power Regulatory Authority (Nepra) Wednesday raised the power tariff by Rs2.86 per unit as Fuel Cost Adjustment (FCA) for March 2022 for ex-Wapda Discos as well as approved raise of Rs4.83 per unit as fuel adjustment charges for consumers of K-Electric (KE).

Central Power Purchasing Agency (CPPA-G) sought Rs3.15 per unit increase in power tariff for March under monthly FCA mechanism whereas KE sought an increase of Rs5.27 per unit in its FCA adjustment. Nepra held hearings for review of power tariff for adjustment of fuel and gave approval to raise power tariff as FCA mechanism.

According to the petition submitted to National Electric Power Regulatory Authority (Nepra), the CPPA-G maintained that actual cost remained Rs9.3869 per unit against the reference fuel charges of Rs 6.2295 per unit during February.

A total of 10,418.42 GWh electricity was generated worth Rs96.032 billion during the said period while 10,078.73 GWh net electricity was supplied to the power distribution companies (DISCOs).

Out of total generation, as many as 16.35 percent electricity was generated from hydel, 24.83 percent coal, 10.62 percent furnace oil, 9.53 percent local gas, 18.87 percent RLNG, 15.01 percent nuclear and 2.57 percent wind. Last week, KE also sought an increase of Rs5.27 per unit in its FCA for March 2022 to recover Rs8.592 billion from consumers.

According to a petition filed by KE, the calculation for the month of March was based on Central Power Purchasing Agency – (CPPA-G) invoice for February 2022 and was subject to adjustments based on Nepra’s decision.

Karachi Electric (KE) has sought an increase of Rs5.27 per unit in its FCA adjustment to recover Rs8.592 billion from consumers for the month of March 2022 under monthly FCA mechanism.

According to KE, 10 percent increase in cost of furnace oil from December 2021 to March 2022 and 40 percent increase has been recorded in the price of RLNG in the months under review. It said there is impact of Rs9 per unit electricity purchased from CCPA during month of March.

In DISCO’s application, the CPPA has asked the authority for the monthly FCA as it said the oil fuel cost and RLNG were much higher than what was charged from the consumers. CPPA pleaded that it had charged the consumers a reference tariff of Rs6.2295 per unit in March 2022, while the actual fuel cost was Rs9.3869/unit. Hence it should be allowed to increase the rate by Rs3.1574 per unit. Earlier, under February 2022 FCA, the regulator had allowed DISCOs an additional Rs4.85/unit and which is being collected in April 2022 bills.

According to the data provided to Nepra, the most expensive energy generation source, Residual Fuel Oil (RFO), was consumed more than usual in previous months, which also jacked up the total cost of generation. In contrast, the least expensive (renewable) share reduced drastically during the month. Interestingly, the percentage of the RLNG-based power also declined.

According to the petition, the total energy generated in March was 10,418GWh from 8,087 GWh in February. The total cost of generating this electricity was Rs96.03 billion with a per unit price of Rs9.2178.

The hydel generation share was 16.35 percent of all energy sources’ generated power pie in March. It contributed 1,703.91GWh of electricity to the national grid. Coal-based power share was 24.83 percent (2,586.62 GWh) with per unit cost of Rs12.4116.

Furnace oil-based power generation more than doubled in March as compared to February. Furnace power plants generated 10.65pc (or 1106.19 GWh) with Rs21.4564/unit cost. In February 2022, power generation from the furnace was at 526.73 GWh or 6.51pc with Rs22.5214/unit cost. No electricity was generated from High-Speed Diesel (HSD) during February.

RLNG-based power generation stood at 18.87 percent (or 1965.68 GWh) with per unit cost of Rs14.3677, while in the previous month, the imported gas generation share was 15.16 percent (or 1226.01 GWh), and its per unit cost was Rs14.3229. The local gas share was 9.53 percent (992.72GWh). Its generation cost was Rs7.7672/unit.

Interestingly, nuclear energy contributed 15 percent (or 1,563.66 GWh) at Rs1.0335/unit cost in March. Its contribution was 12.53pc (1013.26 GWh) in the previous month at Rs1.132/unit. Wind power share was 2.57 percent (269.92 GWh), and bagasse was 1.03 percent (107 Gwh) at Rs5.982/unit. Electricity imported from Iran was 107 GWh at Rs17.3565/unit. The share of solar power was 68.73 GWh.