ISLAMABAD: While grilling the power companies for extensive loadshedding and non-utilisation of efficient plants, the National Electric Power Regulatory Authority (Nepra) on Tuesday finalised Rs3.99 per unit additional fuel cost adjustment (FCA) for ex-Wapda distribution companies (Discos) with a financial burden of Rs51 billion during the current billing month.

Separately, the Oil & Gas Regulatory Authority (Ogra) on Tuesday reduced the consumer price for Liquefied Petroleum Gas (LPG) by 5.6pc to Rs2,581.35 per 11-kg cylinder for June.

The additional FCA was finalised by the regulator at a public hearing presided over by Nepra chairman Tauseef H. Farooqui against a demand of Rs4.0554 per unit additional fuel cost from consumers on electricity consumed in April.

Ogra reduces LPG prices

The Central Power Purchasing Agency (CPPA), on behalf of all ex-Wapda Discos, had sought about 61pc increase in their fuel price adjustment at the rate of Rs4.055 per unit (kWh) for electricity sold in April. It said the consumers were charged a reference fuel cost of Rs6.61 per unit in April, but the actual cost turned out to be Rs10.664 per unit, hence an additional charge of about Rs4.055 per unit to consumers.

The regulator, however, finalised Rs3.99 per unit additional FCA after minor disallowances.

During the hearing, Member Sindh Rafique Shaikh questioned if 33 power plants at the top of the merit order list were getting the required natural gas quantities. The CPPA team responded in the negative. On this, the Nepra team asked the CPPA and National Transmission and Despatch Company (NTDC) to restructure the economic merit order as there was no justification for plants to be kept on the top of the list when they were not getting the cheapest fuel for more than two years.

Extensive loadshedding

The chairman Nepra criticised the CPPA and NTDC team for extensive loadshedding that in some cases went beyond 16-17 hours a day. He asked the power sector officials to find solutions to the power system and observed that it was unfortunate that system was still being run on guesstimates. He also criticized the power sector officials for utilization of inefficient power units.

Published in Dawn, June 1st, 2022

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