ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday notified Rs2.87 per unit additional fuel cost adjustment (FCA) for ex-Wapda distribution companies (Discos) for March and Rs1.39 per unit FCA for K-Electric for consumption in February to provide Rs29bn and Rs1.59bn additional revenue respectively.
“Nepra has approved positive FCA of Rs2.8680/kWh having an impact of around Rs29bn to Discos,” adding that it also approved FCA of Rs1.3863/kWh for February having an impact of Rs1.586bn to KE to be charged in the May bills to all except lifeline consumers.
It said the Discos had demanded FCA of Rs3.16 per unit with a financial impact of Rs32bn for March, while KE has requested Rs3.45 per unit FCA for February with a revenue impact of Rs3.95bn but the regulator scaled down FCAs for both set of entities, following verification of data and examination of evidence.
The regulator, however, did not notify yet another FCA of Rs4.83 per unit for March that it had approved on April 27 to avoid a sudden price shock to consumers but would be notified subsequently for recovery from consumers in June.
Discos, KE allowed to charge additional Rs29bn and Rs1.6bn, respectively
The Central Power Purchasing Agency (CPPA), on behalf of all ex-Wapda Discos, had sought an increase of Rs3.16 per unit in FCA to Rs9.4 per unit for the electricity sold in March to generate about Rs32bn additional. It claimed that the consumers were charged a reference fuel cost of Rs6.23 per unit in March, but the actual cost turned out to be Rs9.4, hence an additional charge of about Rs3.16 per unit to consumers.
It, however, disallowed a couple of claims and concluded the actual fuel cost for March at Rs9.1 per unit instead of Rs9.4 per unit claimed by Discos, hence allowing an additional FCA of Rs2.87 per unit.
Data shows that the share of domestic fuel sources in overall power generation in March was robust (45 per cent). The share of hydropower supply in the overall basket stood at 16.35pc in March, slightly lower than 18.22pc in February but significantly better than just 5.83pc in January. Hydropower share stood at 20pc in December, 33.2pc in November and 23.26pc in October. Hydropower has no fuel cost.
As a result, the biggest contribution of over 25pc in overall power supply came from coal-based power plants in March, but this was significantly lower than February because of low coal stocks amid higher price. In January and February, coal-based generation contributed 33pc and 32pc to the overall power supply.
The coal-based power generation had only 24pc share in the national grid in December and 16.3pc in November. Its fuel cost also slightly reduced to Rs12.4 per unit in March from Rs13.1 in February and Rs14.10 in January.
This was followed by another major chunk of 19pc fuel generation from LNG, 15pc supply from nuclear power, 9.53pc from domestic gas and about 11pc from furnace oil-based plants in March.
In comparison, nuclear power plants contributed 14pc electricity to the national grid in January. The fuel cost of nuclear electricity slightly reduced to Rs1.03 per unit in March against Rs1.13 in February.
The cost of power generation from domestic gas increased to 9.53 per unit in March against Rs8.12 in February and Rs7.75 in January.
Three renewable energy sources — wind, bagasse and solar — together contributed 4.3pc to power supply. Wind and solar have no fuel cost, while that of bagasse has been calculated at Rs5.98 per unit. The most expensive power generation came from furnace oil-based plants — Rs22.52 per unit.
