ISLAMABAD - NEPRA has allowed an increase of Rs 1.80 per unit in power tariff for the month of January and warned that it will withdraw the decision on monthly fuel adjustment if the CPPA-G fails to provide the justification for using expensive furnace oil.

During a public hearing, presided over by Rehmatullah Baloch (member Baluchistan), on the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the Discos, NEPRA was informed that expensive electricity was generated by using furnace and HSD oil.

It was informed that CPPA-G generated around 1722.06GWh electricity from furnace oil and 12.262GWh from HSD costing Rs 24.201 billion. On the other hand, the coal based power plants i.e. Port Qasim & Sahiwal Coal and RLNG based power plants were not fully utilized. Had the units generated on furnace oil be generated from coal and RLNG based power plants, the total fuel cost for such units could have been around Rs 17.4 billion, thus resulting in reduction in total fuel cost by around Rs 6.7 billion i.e Rs 0.01 KWh.

Member Nepra Punjab Saifullah Chatta said that the NEPRA would withdraw its decision of increase in electricity prices on account of fuel adjustment if CPPA fails to give satisfactory explanation about supply of LNG for power plants. He further said that CPPA would have to provide credible information about unavailability of LNG and coal fuel for power plants during month of January.

In its petition, the CPPA said that it had charged consumers a reference tariff of Rs5.7576 per unit in January while actual fuel cost turned out to be more than the amount charged and hence it should be allowed to increase the rate by Rs1.9382 per unit. However Nepra has approved an increase of Rs 1.80 per unit in the electricity tariff for all power distribution companies following electricity generation through expensive fuel, except for K-Electric. The decision will have an impact of an additional Rs 13.50 billion on the electricity consumers. The tariff adjustment will, however, not be applicable to lifeline consumers who consume up to 50 units a month and K-Electric consumers.

As per the data submitted by CPPA-G, in percentage term, use of furnace oil increased from 5.75 GWh to 1722.25 GWh in January. Similarly, the transmission losses in supply of electricity to the Discos also increased by 45.85 percent from 3.01 percent in November 2018 to 4.39 in January 2019.

Use of residual fuel oil-based electricity generation in January further increased and contributed 1722.06 GWh or 22.18 percent electricity at Rs13.92 per unit. In November, the RFO-based electricity contributed 5.75 GWh or 0.08 percent. The total cost of the RFO-based electricity during December was Rs14.19 billion or 15.25 per unit.

According to the petition, total energy generated in January was 7763.57 GWh at a total price of Rs56.73 billion which is Rs7.30 per unit. Of the total, the net electricity delivered to Discos was 7423.11 GWh at Rs57.13 billion with transmission losses of 4.39 percent.

The transmission losses of Discos increased by 2.77 percent during October, which further increased by 8 percent to 3.01 percent in November and further increased by 15.92 percent to 3.58 in December and it further increased by 22.65 percent during January. As per the data, the total energy generation from all sources in January 2019 was recorded at 7763.57 GWh.

According to the data provided to NEPRA, the share of hydropower generation in January was only 477.62 GWhs or 6.16 percent of the total generation.

In December, the hydropower share was 1334.49 GWhs or 17.29 percent and in November, it was 2563.97 GWhs or about 33.98 percent.

The energy generated from RLNG was 1138.25 GWhs or 14.66 percent of total generation.

Residual fuel oil-based electricity generation increased from 5.75 GWhs in November to 930.78 GWhs during December. In January, the RFO-based electricity further increased and contributed 1722.06 GWh or 22.18 percent electricity at Rs 13.92 per unit.

The total generation, in January, from local gas-based electricity was 1609.42 GWhs, accounting for 22.02 percent of total generation and its cost of electricity was Rs5.08 per unit.

The total generation from coal-based energy was 1451.80 GWhs or 18.70 percent and per unit cost was Rs6.79. The total generation cost of coal electricity was Rs3.3820 per unit in October.

The share of nuclear energy in the national energy mix was 905.62 GWhs or 11.66 percent in January and the fuel cost was 95 paisa per unit. Baggasse based electricity contributed 86.42 GWhs or 1.11 percent at cost of Rs 6.18 per unit.

The share of electricity imported from Iran was 35.04 GWhs or 0.45 percent and cost of the electricity was Rs11.5709 per unit. The share of wind energy was 156.27 GWhs and its share in the generation mix was 2.01 percent. While 43.20 GWhs or 0.56 percent contribution came from solar energy at no cost. Mixed Energy also contributed 25.65 GWh or 0.33 percent electricity to the national grid at the cost of Rs 6.67 per unit.