NEPRA has so far calculated a power price reduction of Rs 10.80 per unit for KE customers and Rs 2.32/unit for customers of DISCOs.
The National Electric Power Regulatory Authority (NEPRA) has so far calculated a power price reduction of Rs 10.80 per unit for K-Electric (KE) customers and Rs 2.32/unit for customers of power distribution companies (DISCOs) for the month of December 2022.
NEPRA held separate hearings on Tuesday regarding the requests from KE and the Central Power Purchasing Agency (CPPA) to consider a change to the FCA of December 2022. Following an initial review of the data, NEPRA has indicated that a reduction in the power price of Rs 10.80 per unit for DISCO customers and Rs 2.3 per unit for KE customers will be approved.
Chairman of NEPRA Tauseef H. Qureshi presided over the hearing, which also included NEPRA members Engineer Rafique Ahmed Shaikh and Engineer Maqsood Anwar. In its application on behalf of DISCOs, CPPA asked for a reduction in the power tariff of Rs 2.20 per unit, while KE asked for a reduction of Rs 1.26 per unit under the heading FCA for December 2022.
NEPRA claims that the FCA of December 2022 will not apply to electric vehicle charging stations, domestic power users who use 300 units per month, DISCO lifeline customers, or agricultural customers (EVCS).
After conducting the necessary data analysis, “the Authority will issue its detailed judgement regarding FCA by December 2022,” according to NEPRA. It also stated that the FCA of December 2022 would only be in effect for one month.
The CPPA had previously claimed in its application that the total amount of electricity produced using different fuels in the month of December 2022 was 8,416.81 gigawatt hours (GWh), at a basket price of Rs 7.0441 per unit. Energy expenses came to Rs 59,289 million in total.
Hydel plants generated 1,720.43 GWh of electricity, or 20.44% of total production, while coal-fired plants generated 1,520.93 GWh of electricity, or 18.07%, at a cost of Rs 11.4954 per unit. At a cost of Rs 25.7971 per unit, residual fuel oil (RFO) power generation accounted for 38.91 GWh, or 0.46% of total generation.
In comparison to power from regasified liquefied natural gas (RLNG), which totaled 1,153.73 GWh, or 13.71%, at Rs 20.2071 per unit, gas-based plants produced 1,273.80 GWh, or 15.13%, at Rs 10.4992 per unit.
Production from mixed sources was 2.18 GWh at a cost of Rs 3.2781 per unit; bagasse production was 101.09 GWh at a cost of Rs 5.9731 per unit; wind production was 211.57 GWh; and solar production was 69.46 GWh at a cost of Rs 2.7773 per unit. At a cost of Rs 1.0726 per unit, nuclear energy produced 2,284.86 GWh, or 27.15% of the total amount. Iran supplied 39.85 GWh of electricity at a cost of Rs 21.5555 per unit.
Data provided to NEPRA by the CPPA also revealed that 8,096.88 GWh of net electricity were delivered to DISCOs in December 2022, costing Rs 7.1198 per unit for a total of Rs 57,648 million.
In its request for a tariff adjustment, the CPPA advocated that the reference fuel charges for DISCOs for December 2022 be fixed at Rs 9.3193 per unit while the actual fuel charges were recorded at Rs 10.9833 per unit adjustment, the CPPA advocated that the reference fuel charges for DISCOs for December 2022 be fixed at Rs 9.3193 per unit while the actual fuel charges were recorded at Rs 10.9833 per unit.
According to KE, the price decreases for RLNG, furnace oil, and power purchased from the central power purchasing agency (CPPA) of 17%, 15%, and 29%, respectively, as compared to September 2022, were the main reasons why the FCA request for December was lower.
It is important to note that the FCA is typically only applicable to consumer bills for one month and is reviewed each month in accordance with the national tariff regime. Under the established rules and regulations of NEPRA and the government of Pakistan, FCAs are associated with variations in the price of fuel globally and added to consumer bills.