ISLAMABAD: Ex-Wapda distribution companies (Discos) have sought about 44 paisa per unit increase in consumer tariff on account of monthly fuel price adjustment due to currency devaluation and higher international oil prices despite healthy contribution from cheap renewables.

The National Electric Power Regulatory Authority (Nepra) will take up for public hearing on Oct 24 a petition seeking an increase in consumer tariff for Discos on account of fuel cost adjustment for electricity consumed in September.

The higher electricity rates, on approval by the regulator, would be recovered from consumers in the upcoming billing month — November.

The Central Power Purchasing Agency-Guarantee (CPPA-G) on behalf of Discos claimed an additional cost of 44 paisa per unit under base tariff 2015-16. The CPPA in its petition said it had charged consumers a reference tariff of Rs5.12 per unit in September while the actual fuel cost turned out to be Rs5.57 and hence it should be allowed to recover 44 paisa additional cost from consumers next month.

The total power generation from all sources in September was recorded at 12,552 Gwh — around 11 per cent lower than 14,017 Gwh in August. The total cost of energy generated in September amounted to Rs63.4 billion. Of this, about 12,082 Gwh was sold to Discos at Rs67.25bn with a transmission loss of 3.57pc.

The share of hydel power generation in September remained healthy at 34pc — up from 32pc in August and 28pc in July. With the induction of three new mega power projects of 1,230MW each in Punjab, re-gasified liquefied natural gas (RLNG) captured the second position with a contribution of 22.68pc.

In contrast, residual fuel oil (RFO)-based power generation was reported at 8.1pc in September as against Rs11.73pc in August, while locally produced gas-based generation stood at 15.78pc, compared to 14.55pc in August. Coal-based generation fell down to 9.1pc last month, compared to 9.6pc in August and 12.63pc in July.

There was no fuel cost on hydroelectricity, while the fuel cost of coal-based plants stood at Rs6.48 per unit, compared to Rs15.56 of furnace oil-based plants. The LNG-based generation cost slightly reduced to Rs9.9 per unit in September, compared to Rs10.2 in August. The domestic gas-based generation cost stood at Rs4.85 per unit.

Nuclear energy contributed about 5.43pc electricity to the national grid at a fuel cost of 97 paisa per unit, while power produced by sugar mills accounted for less than 1pc share at a fuel cost of Rs6.2 per unit. Electricity imported from Iran had a cost of Rs11.57 per unit and its total share in generation was 0.38pc.

Wind produced 2.73pc electricity at zero fuel cost, while or 0.51pc contribution came from solar energy, again at no cost.

The higher tariff adjustment will not be charged to lifeline consumers using up to 50 units per month. However, all other consumer categories, including industrial sector and agriculture tubewells, will bear the additional burden. The decision will not be applicable to K-Electric consumers.

Published in Dawn, October 18th, 2018