Nepra okays Rs7.90 per unit hike for month of May

KARACHI: The National Electric Power Regulatory Authority (Nepra) on Monday approved Rs7.90 per unit raise as fuel charges adjustment (FCA) for ex-Wapda distribution companies (Discos) for the month of May.

Nepra allowed the raise in the power tariff on account of FCA for month of May at a public hearing and according to the notification, the increase will be applicable to all consumer categories except lifeline and K-Electric consumers.

It stated that fuel charge adjustment would be shown separately in the consumers bills on the basis of units billed to them in May and the charges would be reflected in the bill for July. The Rs7.90 increase will put a burden of around Rs131.8 billion on consumers, including GST. Nepra would issue a detailed decision on raise in tariff of electricity on account of FCA later.

The Central Power Purchasing Agency-Guaranteed (CPPA-G) sought Rs7.96 raise in the power tariff on account of FCA for the month of May in its petition.

The cost of electricity generated from coal was Rs18.01 per unit and the power generated from this source contributed 13.77 percent in the total power generation. The cost of electricity generation from furnace oil was Rs33.67 per unit and it contributed 8.80 percent in power generation in the month under review.

The cost of electricity obtained from re-gasified liquefied natural gas (RLNG) was Rs27.92 per unit and it contributed to 22.89 per cent of electricity produced in the country.

The cost of electricity generated from indigenous gas was Rs10.12 per unit and its contribution in the power generation was almost ten percent in month of May. The cost of imported power from Iran was Rs18.95 per unit and it contributed 0.37 percent in the total generation. The cost of power generation from high speed diesel was Rs30 per unit. During the hearing, CCPA-G officials said that the cost of coal has increase manifold in the global market and pointed out that the Russia-Ukraine conflict has pushed up the price of coal in the global market.

It is worth mentioning that Nepra already approved Rs3.99 per unit under the FCA for the month of April which will be charged in June’s electricity bills. The approximately Rs4 hike was announced on account of an increase in fuel prices, capacity costs and the impact of rupee's devaluation. The surging cost of power generation has already burdened the K-Electric consumers when Nepra allowed KE to raise power tariff by Rs5.27 per unit on FCA for month of April.