National Electric Power Regulatory Authority (Nepra) on Tuesday approved refund of Rs 1.90 per unit to consumers of power Distribution Companies (Discos) for May 2017 under monthly fuel adjustment mechanism. Chairman Nepra Brigadier Tariq Saddozai (retired) presided over the public hearing which was attended by the officials of Nepra, CPPA-G and National Power Control Centre (NPCC) which is responsible to maintain merit order of power plants.
The refund approved by the Authority will not be applicable to K-Electric, agricultural consumers and those domestic users who consume up to 300 units per month. According to the data submitted to the regulator, the actual fuel charges for May 2017 have been calculated at Rs 4.8807 per unit against reference fuel charges of Rs 6.7764 per unit, showing a difference of Rs 1.8957 per unit.
In May 2017, total generation has been calculated at 11,024 GWh but CPPA-G delivered 10,888 GWh, which was 98.70 percent of total generation. The total cost of net delivered electricity to Discos was Rs 53.105 billion. The total impact of refund is expected to be Rs 20 billion.
Of the total of 11,024 GWh, 2,016 GWh electricity was sold to Independent Power producers (IPPs) at a cost of Rs 325.8 million. Transmission losses have been calculated at 122.8 GWh which is 1.11 percent of total generation and substantially less than the maximum allowed losses of 3 percent by the regulator. The CPPA said the actual generation cost was lower and hence extra money collected from consumers needs to be refunded through adjustment in the next billing month under automatic fuel pass through mechanism.
In May, Central Power Purchasing Agency (CPPA) reported that hydel generation was 3,326 GWh which was 30.17 percent of total generation, followed by 30 percent through Residual Fuel Oil (RFO) at a rate of Rs 9.4 per unit. Total cost of electricity generated from RFO was Rs 31 billion.
Coal fired generation was 237 GWh - 2.15 percent of total generation cost which has been calculated at Rs 26.13 million or Rs 0.1102 per unit. High Speed Diesel (HSD) - consumed generation 406.5 GWh, was 3.69 percent of total generation at a total cost of Rs 5.981 billion or Rs 14.7 per unit.
The natural gas-fired generation was 1,944 GWh - 17.64 percent of total generation at a cost of Rs 8.630 billion or Rs 4.4378 per unit. Generation from RLNG was 857.3 GWh at a cost of Rs 7.11 per unit. Total cost of RLNG-fired generation was Rs 6 billion. The cost of nuclear electricity was Rs 1.04 per unit, electricity imported from Iran at Rs 10.6 per unit, mixed Rs 6.88 per unit, baggasse Rs 5.98 per unit. CPPA has also sought previous adjustment/supplemental charges of Rs 266.68 million which is Rs 0.0242 per unit.
Before concluding public hearing Chairman also responded to questions about power sector issues. In reply to a question, he said that an inquiry report about Karachi Electric (KE) has not been placed before the Authority so far. He further stated that an inquiry has also been conducted into electricity affairs of Hyderabad Electric Supply Company (Hesco).
Nepra has dispatched a team headed by Member Nepra (KPK) Hamayat Ali Khan to conduct an inquiry on electricity supply affairs of Peshawar Electric Supply Company (Pesco). Chairman Nepra said that such inquiries will also be held in other Discos. Chairman Nepra also directed the officials of Nepra to check why Iesco has not passed on fuel price adjustment in bills of May 2017, adding that it was a very serious issue.