Electricity tariffs will increase for a month across the country



The National Electric Power Regulatory Authority (Nepra) on Friday authorized ex-Wapda distribution companies (XWDISCO) an increase of Rs 2.87 per unit in the electricity tariff and a rise of Rs 1.38 per unit for K-Electric consumers due to the Fuel Charge Adjustment (FCA) for the months of March and February of this year respectively.

Nepra, after incorporating several adjustments, has reviewed and assessed an increase of Rs 2.8680 per unit in the tariff applicable to XWDISCO due to changes in fuel charges for the month of March, it said in a statement. published after a public hearing has been held. .

In its petition, the Central Power Purchasing Agency (CPPA-G) had requested an increase of Rs3.1573 per unit because of the FCA for March, having a cumulative impact of over Rs32 billion.

Nepra conducted the hearing on the motion and reserved its decision. According to the decision, the power regulator approved an increase of Rs 2.8 per unit in the electricity tariff due to the FCA to charge consumers about Rs 29 billion.

The March rate increase will be billed in the May billing month of this year to all classes of XWDiscos consumers except those on the Lifeline.

The electricity rate hike would only remain applicable for one month and would not be applicable to K-Electric consumers.

In a petition submitted to Nepra on behalf of XWDISCO, CPPA-G had stated that the benchmark fuel cost was Rs 6.2295 per unit. However, the actual fuel cost rose to Rs 9.3869 per unit.

Therefore, CPPA-G had requested an increase of Rs 3.1574 per unit to recover the amount from consumers.

In its decision, Nepra observed that the cost of fuel for certain power plants had not been claimed by the CPPA-G in accordance with the tariffs approved by the authority.

As a result, he added, it had been adjusted downward in accordance with the tariffs approved by the authority for the month of March.

According to data submitted by CPPA-G, XWDISCO purchased 13.22 GWh from captive power plants in March 2022. According to details provided by CPPA-G, the actual fuel cost of this energy was established at 63, 88 rupees. million.

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The electricity regulator has also announced its decision on increasing tariffs for K-Electric consumers due to FCA for February this year.

He said K-Electric management had requested an increase of Rs 3.452 per unit because of FCA for February to charge consumers Rs 3.95 billion.

In its decision, however, the regulator approved an electricity tariff hike of Rs 1.3863 per unit with a cumulative financial impact of Rs 1.58 billion.

The regulator allowed K-Electric to bill the rate hike in the monthly bill for May this year. The increase will apply to all categories of consumers except those in the lifeline.
Nepra conducted the public hearing on April 4.

During the hearing, Nepra had noted that the power purchase agreement had been signed between the National Transmission & Despatch Company (NTDCL) and K-Electric on January 26, 2010 for five years for the sale and purchase of 650 MW at basket tariffs.

Subsequently, on November 8, 2012, the Council for Common Interests (CCI) took a decision on the modalities for the withdrawal of electrical power from the NTDCL. The move had reduced 300 MW from NTDCL to K-Electric.

The regulator had noted that K-Electric continued to draw 1,100 MW of electricity from the national grid without signing a new agreement with NTDCL.

K-Electric had claimed a regasified liquefied natural gas (RLNG) rate of Rs 2,479.61 per mmbtu to generate electricity from its own power stations.

However, the Oil and Gas Regulatory Authority (Ogra) in its decision dated March 11, 2022 revised the RLNG rate for the month of February 2022 to $13.9048 per mmbtu, which was calculated at 2,449, Rs 05 per mmbtu in local currency.

Following the price revision, the electricity regulator had deducted Rs 41.61 million and ordered K-Electric to provide revised RLNG bills.

The regulator had also pointed out that some efficient power plants were not being fully utilized. Instead, electricity was generated from inefficient power plants.

He noted that K-Electric had not utilized the Korangi gas engine power station and the site gas engine power station to their full capacity.

The utility also had drawn less power from the NTDCL during certain hours.

The K-Electric had informed the regulator that it was resolving the lower gas pressure issue with the Sui Southern Gas Company.


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