Nepra may allow Rs 1.9 per unit raise in Discos'' tariff

National Electric Power Regulatory Authority (Nepra) is likely to allow Rs 1.90 per unit increase in Discos'' electricity tariff across the board except for lifeline consumers using 50 units or less per month. The proposed raise is based on consumption of different fuels in power generation in January 2012 that will be passed on in the bills of March 2012 under the monthly fuel adjustment formula.
Pursuant to section 31(4) of Nepra Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determinations of ex-Wapda Discos'', the Authority has to review and revise the approved tariff on account of any variations in the fuel charges on monthly basis.
Based on the information of generation sources provided by the Central Power Purchase Agency (CPPA), the actual fuel charges for Discos'' for the month of January 2012 are as follows: (i) Hydel- 991.37 GWh- share 15.87 percent, total cost Rs 223 million - per unit cost Rs 0.2246; (ii) HSD- 119.99 GWh- share in total generation- 1.92 percent, total cost Rs 2.312 billion with Rs 19.26 per unit; (iii) Residual Fuel Oil (RFO)- 2,652.07 GWh , share in total generation 42.45 percent indicating a cost of Rs 16 per unit; (iv) Gas- generation 1,954.96 GWh- share in total generation 31.29 percent- total cost Rs 8.541 billion, depicting Rs 4.3691 per unit; (v) Nuclear generation - 435.8 GWh- share in total generation 6.98 percent- total cost- Rs 529 million- per unit cost-Rs 1.2145; (vi) Import Iran- 20.77 GWh- share in electricity supplied to CPPA- 0.33 percent-total cost Rs 187 million- cost Rs 9.02 per unit; (vii) Mixed generation -71.74 GWh-share in generation-1.15 percent-total cost Rs 968 million- cost Rs 13.5 per unit; and (viii) wind generation- 0.46 GWh- share in total generation-0.01 percent cost Rs four million showing Rs 9.1213 per unit.
Hence, total generation has been reported at 6,247.17 GWh in January, total cost of which was Rs 55.208 billion, indicating Rs 8.8373 per unit. On the basis of data provided to Nepra, Discos'' have sought an increase of Rs 1.9611 per unit for January 2012 over the reference changes of Rs 7.3201 per unit. In this regard public hearing has been scheduled for March 20, 2012 in Nepra offices. Nepra recently notified Rs 3.03 per unit increase in tariff, announced last year but it was withheld due to stay orders granted by the High Courts.