FCA for July: CPPA-G seeks Rs1.47-per-unit hike in Discos’ tariffs

ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has sought an increase of Rs1.47 per unit in tariffs of Distribution Companies (Discos) for July 2021 under monthly FCA mechanism.

National Electric Power Regulatory Authority (Nepra) will hear the request of CPPA-G on September 1, 2021. The main reason for the increase in FCA was generation from expensive fuels due to suspension of RLNG for a few days and less generation from hydel.

According to the data submitted to Nepra, in July 2021, hydel generation was recorded at 4,694.67 GWh, which constituted 29.94 per cent of total generation in the entire month. Power generation from coal-fired power plants was 2,383.33 GWh (15.20 per cent of total generation) at a rate of Rs 8.4101 per unit, whereas generation from HSD was recorded at 123.5 GWh (0.79 per cent) at Rs 19.3422 per unit. Generation from RFO was 1,612.34 GWh (10.28 per cent of total generation) at Rs 17.0783 per unit.

Electricity generation from gas-based power plants was 1,361.17 GWh (10.28 percent) at Rs 8.1720 per unit, RLNG-3,137.68 GWh (20.10 percent of total generation) at Rs 12.0604 per unit, nuclear - 1,659 GWh at Rs 1.000 per unit (10.59 percent of total generation), and electricity imported from Iran was 40.09 GWh at Rs 11.6663 per unit.

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The power generation from different sources (mixed) was 9.88 GWh at a price of Rs 4.4846 per unit, while generation from baggasse recorded at 45.02 GWh at Rs 5.9822 per unit.

The energy generated from wind was recorded at 550.37 GWh, 3.51 percent of total generation and solar at 61.82 GWh, 0.39 per cent of total generation in July 2021.

The total energy generated recorded at 15,679.72 GWh, at a basket price of Rs 6.4653 per unit. The total cost of energy was Rs 101.375 billion. The CPPA-G also sought previous adjustment/supplemental charges of Rs 1.753 billion against negative use of power of 7.48 GWh. The sale to IPPs was also reduced by 14.82 GWh, the price of which was Rs 423 million while the reduction in transmission losses was recorded at 445.63 GWh.

According to the CCPA-G data, net electricity delivered to Discos in July 2021 was 15,219.27 GWh at a rate of Rs 6.7485 per unit, total price of which was Rs 102.707 billion.

The CPPA-G in its tariff petition maintains that since the reference fuel charges for July 2021 were estimated at Rs 5.2798 per unit whereas the actual fuel charges were Rs 6.7485 per unit, hence an increase of Rs 1.4687 per unit has been sought for the July 2021.

Copyright Business Recorder, 2021