Nepra notifies fuel adjustment charges for KE and other utilities

NEPRA. Photo: The News/File

KARACHI: The National Electric Power Regulatory Authority (Nepra) on Wednesday increased the electricity tariff by Rs 2.86 per unit as a Fuel Cost Adjustment (FCA) for March 2022 for old Wapda discs as well as an approved increase of Rs 4.83 per unit as fuel charge adjustment for K-Electric (KE) consumers.

The Central Power Purchasing Agency (CPPA-G) has requested an increase of Rs 3.15 per unit in the electricity tariff for March under the monthly FCA scheme, while KE has requested an increase of Rs 5.27 per unit. unit in its FCA adjustment. Nepra held hearings for the review of the electricity rate for the fuel adjustment and gave its approval to increase the electricity rate as an FCA mechanism.

According to the petition submitted to the National Electric Power Regulatory Authority (Nepra), CPPA-G argued that the actual cost remained at Rs 9.3869 per unit compared to the benchmark fuel charge of Rs 6.2295 per unit in February. .

A total of 10,418.42 GWh of electricity was generated worth Rs 96.032 billion during the said period, while 10,078.73 GWh of net electricity was supplied to power distribution companies ( DISCO).

Of the total production, up to 16.35% of electricity was generated from hydel, 24.83% from coal, 10.62% from fuel oil, 9.53% from local gas, 18.87% of RLNG, 15.01% nuclear and 2.57% wind. Last week, KE also requested an increase of Rs 5.27 per unit in its FCA for March 2022 to recoup Rs 8.592 billion from consumers.

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

Karachi Electric (KE) has requested an increase of Rs 5.27 per unit in its FCA adjustment to recover Rs 8.592 billion from consumers for the month of March 2022 under the monthly FCA scheme.

According to KE, a 10% increase in the cost of heating oil from December 2021 to March 2022 and a 40% increase were recorded in the price of RLNG during the months under review. He said there was an impact of Rs 9 per unit of electricity purchased from CCPA during the month of March.

In DISCO’s application, CAPP asked the authority for the monthly FCA because it stated that the cost of fuel oil and RLNG were much higher than what consumers were charged. CAPP argued that it charged consumers a benchmark rate of Rs 6.2295 per unit in March 2022, when the actual fuel cost was Rs 9.3869/unit. Therefore, it should be allowed to increase the rate to Rs3.1574 per unit. Previously, under the FCA of February 2022, the regulator granted DISCOs an additional amount of Rs 4.85/unit and which is collected in the bills of April 2022.

According to data provided to Nepra, the most expensive source of power generation, residual fuel oil (RFO), was consumed more than usual in previous months, which also drove up the total cost of generation. . On the other hand, the cheapest share (renewable) fell sharply during the month. Interestingly, the percentage of energy based on RLNG has also decreased.

According to the petition, the total energy generated in March was 10,418 GWh compared to 8,087 GWh in February. The total cost of generating this electricity was 96.03 billion rupees with a unit price of 9.2178 rupees.

Hydel’s production share was 16.35% of the electricity pie generated by all energy sources in March. It supplied 1,703.91 GWh of electricity to the national grid. The share of coal-based electricity was 24.83% (2,586.62 GWh) with a unit cost of Rs 12.4116.

Oil-fired electricity production more than doubled in March compared to February. Furnace power plants generated 10.65 pc (or 1106.19 GWh) with a cost of Rs21.4564/unit. In February 2022, the electricity generation of the kiln was 526.73 GWh or 6.51 pc with a cost of Rs22.5214/unit. No electricity was generated from high-speed diesel (HSD) in February.

Power generation based on RLNG stood at 18.87% (or 1965.68 GWh) with a unit cost of 14.3677 rupees, while the previous month the share of imported gas generation was 15 .16% (or 1226.01 GWh), and its unit cost was 14 rupees. .3229. The local gas share was 9.53% (992.72 GWh). Its production cost was Rs7.7672/unit.

Interestingly, nuclear power contributed 15% (or 1,563.66 GWh) at Rs 1.0335/unit cost in March. Its contribution was 12.53 pc (1013.26 GWh) the previous month at Rs1.132/unit. The share of wind energy was 2.57% (269.92 GWh) and bagasse 1.03% (107 GWh) at Rs 5.982/unit. Electricity imported from Iran was 107 GWh at Rs17.3565/unit. The share of solar energy was 68.73 GWh.

Eleanor C. William