The Central Power Purchasing Agency has submitted a request for a substantial Rs4.66 per unit fuel cost adjustment (FCA) to the National Electric Power Regulatory Authority (Nepra).
The Central Power Purchasing Agency (CPPA) has submitted a request for a substantial Rs4.66 per unit fuel cost adjustment (FCA) to the National Electric Power Regulatory Authority (Nepra). This adjustment is intended to cover an increase in the ex-Wapda distribution companies’ (Discos) costs, aiming to generate additional revenue in January 2024. The public hearing on CPPA-G’s request is scheduled to take place on Wednesday, December 7, 2023.
In its petition, CPPA, acting as the commercial agent of the Discos, has sought an additional FCA of Rs4.66 per unit for the billing month of January 2024, covering electricity consumed in November. The adjustment is proposed to offset the rising costs associated with various sources of power generation during that period.
According to CPPA data for November 2023, hydel generation accounted for 36.50% of the total generation, amounting to 2,775 GWh. Local coal-fired power plants contributed 13.08% with 987 GWh at a rate of Rs15.2698 per unit, while 644 GWh were generated from imported coal at Rs14.5305 per unit, constituting 6.44% of the total.
HSD (High-Speed Diesel) generation recorded zero, and RFO (Residual Fuel Oil) contributed a minimal 0.3 GWh (0.00% of total generation) at Rs46.7125 per unit. Gas-based power plants generated 695 GWh (9.21%) at Rs14.6197 per unit, and RLNG (Re-Gasified Liquefied Natural Gas) contributed 798 GWh (10.57%) at Rs23.7171 per unit.
Nuclear sources accounted for 20.83% of total generation, producing 1,576 GWh at Rs1.201 per unit. Additionally, electricity imported from Iran totaled 30 GWh at Rs27.7281 per unit, representing 0.39% of the total generation. Wind energy contributed 148 GWh, bagasse 27 GWh, and solar 50 GWh at a rate of Rs5.9822 per unit.
In total, the energy generated reached 7,547 GWh, with a basket price of Rs7.1704 per unit. The net electricity delivered to Discos in November 2023 was 7.228 GWh at a rate of Rs9.4448 per unit, amounting to a total cost of Rs68.843 billion.
Based on this data, CPPA has requested Nepra to consider an increase of Rs4.6617/kWh over the reference fuel charges, which were notified for ex-Wapda Discos at Rs4.7831/kWh. This adjustment is intended to cover the costs incurred during November 2023 and to ensure the financial viability of the power generation and distribution sector.
The public hearing scheduled for December 7 will provide a platform for stakeholders to discuss and evaluate the proposed fuel cost adjustment, considering the complex dynamics of the energy market and the challenges faced by the power sector in maintaining a sustainable and efficient operation.