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Wednesday September 28, 2022

Nepra allows DISCOs to collect Rs9.9/unit extra in Aug bills

With the implementation of this increase, the government would collect an additional Rs156 billion in August 2022

August 13, 2022
Nepra allows DISCOs to collect Rs9.9/unit extra in Aug bills

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) Friday allowed ex-Wapda power distribution companies (XWDISCOs) to make a whopping Rs9.8972 per unit additional collection from the power consumers in their billing month of August. In June they paid less than what was the cost of the power generation, especially from costly imported RLNG [Regasified Liquefied Natural Gas] and oil and devaluation of rupee against US dollar.

With the implementation of this increase, the government would collect an additional Rs156 billion in August 2022 that includes monthly fuel charges adjustment (FCA) plus 17 per cent GST.

The power regulator Friday notified its decision of a massive Rs9.90 per unit increase in the power price under the head of the FCA for the month of June 2022. The increase in the power price would be applicable to all consumer categories except for lifeline consumers of all DISCOs and K-Electric. The said adjustment would be shown separately in bills on the basis of units billed in the month of June.

It is to be noted that on Thursday, Nepra also permitted K-Electric to collect an additional Rs11.1023/unit electricity bills for August and September 2022 on account of FCA for June 2022. K-Electric would collect nearly Rs25 billion (including GST) from its clients. Nepra, under the FCA, for May 2022 too, allowed the company to charge Rs9.518/unit in two months, including Rs2.6322/unit in July and Rs6.886/unit in August 2022.

DISCOs should reflect the FCA in respect of June 2022 in the billing month of August 2022, the notification reads, adding that the power distribution companies concerned should keep in view and strictly comply with court orders notwithstanding while applying the adjustment charges.

For the month of May 2022 also, Nepra increased the power tariff by Rs7.90/ unit for XWDISCOs on account of monthly FCA, which is being collected in July bills.

Last week, Nepra decided Rs7.91/unit increase in average base tariff across the country in three phases, starting from July 2022. Additionally, the government has also approved Rs1.55/unit increase in base tariff across the country under a quarterly adjustment.

The federal government also notified a Rs3.50 per unit increase (out of Rs7.9078/unit) in the national base electricity and tariff, promising to investigate complaints of overbilling on account of monthly FCAs in the current bills.

Nepra has also recently allowed DISCOs to collect additional Rs0.5087 per unit on account of quarterly adjustments for the fiscal year 2021-22 and it will be charged next three consecutive months starting from September 2022. DISCOs will collect an additional Rs12.762 billion as an adjustment for the third quarter (Jan-March 2021-22). The rise in tariff will not affect lifeline consumers (using less than 100 units a month) and incremental industrial sales for the industrial support package.

Earlier, for the first quarter (July-Sept 2021-22), the power regulator allowed Rs0.517/unit with a combined impact of Rs14.3 billion. For the second quarter (Oct-Dec 2021-22), Nepra had allowed Rs1.55/unit increase for three months starting from July 2022. The second quarter adjustment will have a financial impact of Rs39 billion being collected from consumers.

It may be noted that in June 2022, around 13,876.14 GWh electricity was generated at the cost of Rs204.237 bn (or Rs14.7186/unit) and 13,471.05 GWh had been delivered to Discos at Rs213.434b (or Rs15.8439/unit). The losses during June were 2.92pc.

It was informed that the hydel generation decreased to 3361.21 GWh (24.22pc) during June from 3,590.92 GWh (24.5pc) during May. The data further said that 1,454.04 GWh (10.48pc) expensive electricity was generated from furnace oil during June, which was higher than the 1,290.33GWh (8.80pc) RFO-based generation of May. The RFO-based electricity in June cost Rs36.2024/unit, which was higher than May’s cost of Rs33.67/unit. No electricity was generated from high-speed diesel during the month. The natural gas-based generation contributed 1,479.32 GWh (10.66pc) of electricity to the national grid in June at Rs8.9264/unit.

The cost of RLNG based electricity was also increased to Rs28.3833/unit in June from Rs27.92/unit during the previous month. The RLNG-based electricity contributed 3,390.54 GWh (24.43pc) to the national grid.

The generation from coal-based power plants decreased to 1,883.13 GWh (13.57pc) in June from 2,018.19GWh (13.77pc) in May. Coal was comparatively cheaper source for power generation viz-a-viz RFO and RLNG, and it cost Rs20.8077/unit. In May, per unit cost of coal-based power was Rs18.01/unit.

Generation from nuclear power plants also decreased to 1,265.67 GWh (9.12pc) in June from 1,890.38GWh (12.90pc) in May. Per unit cost of nuclear power was Rs1.1244/unit. In June Pakistan imported 51.49GWh electricity from Iran at the cost of Rs19.57/unit. From bagasse, 83.01 GWh electricity was generated at Rs5.9822/unit. Wind, solar and mixed sources contributed 811.59GWh, 86.82 GWh, and 9.87GWh respectively to the national grid during June.

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