ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has raised Discos tariffs by Rs 4.13 per unit for November 2023 under monthly Fuel Charges Adjustment (FCA) mechanism, to be recovered in bills of January 2024.

According to information provided by CPPA-G, the actual pool fuel cost for the month of November 2023, was Rs 9.4448/kWh, against the reference fuel cost component of Rs.4.7831/kWh as notified in consumer-end tariff of ex-Discos for the FY 2023-24. The actual fuel charges, as claimed by CPPA-G, for the month of November 2023 increased by Rs 4.6617/kWh as compared to the reference fuel charges. The Authority conducted the hearing in the matter on December 27, 2023. The Authority observed that CPPA-G purchased energy of 29.73 GWh from Tavanir Iran in November 2023 at a cost of Rs 824 million; however, contract between CPPA-G and Tavanir Iran for import of power up-to 104 MW expired on December 31, 2021.

In view thereof, the cost of electricity purchased from Tavanir Iran is being allowed strictly on provisional basis, subject to its adjustment once the Authority decides the extension in the contract between CPPA-G and Tavanir Iran or otherwise. The cost being allowed on provisional basis is to avoid piling up of the cost and one time burdening of the consumers in future. In addition, CPPA-G reported energy 0.278 GWh from Saba power and claimed fuel cost of Rs.12.99 million. During verification process CPPA-G stated that said energy be treated as free energy, therefore, the claimed fuel cost against energy supplied by Saba Power of Rs 12.99 million has been excluded while working out instant monthly FCA of November 2023.

Copyright Business Recorder, 2024