ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Wednesday notified an additional fuel cost adjustment (FCA) of 40 paise per unit for consumers of ex-Wapda distribution companies (Discos) with a net financial impact of Rs5.2bn for electricity consumed in September.

The “adjustment of Rs0.4014/kWh sha­ll apply to all the consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers. Ex-Discos shall reflect the fuel charges adjustment in November bills”, said Nepra’s notification.

The Central Power Purchasing Agency (CPPA), on behalf of Discos, had dema­nded 55 paise per unit additional FCA to raise Rs7bn for electricity consumed in September.

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It claimed that the consumers had been charged at a reference fuel cost of Rs7.07 per unit in September, but the actual cost turned out to be Rs7.62 per unit, hence an additional charge of 55 paise per unit should be allowed.

Over 77pc electricity was generated from cheaper domestic fuels in September

However, the regulator after holding a public hearing and verifying the certified data based on documentary evidence worked out about 40 paise per unit FCA to be charged to consumers during the current billing month.

The additional FCA has again emerged even though over 77pc power electricity generation came from cheaper domestic fuels on top of abo­ut 26pc increase in annual base tariff and about 18pc hike under quarterly tariff adjustments.

The hydropower generation contributed about 37.55pc share to the national grid in September, slightly lower than 37.6pc in August. In absolute terms, the hydropower production (five billion units) in September was almost 17pc lower than 6bn units in August. Hydropower has no fuel cost. The overall power supply at 12.9bn units was also down by 16pc in September when compared to about 15.5bn units in August.

With almost 2.3bn unit contribution, nuclear power claimed second position (17pc) in the national grid in September against 2bn units or 12.79pc share in August. The LNG-based power generation at about 16pc came in at third position, down from 17.2pc share in August, down from 19.67pc in July and 18.55pc in June.

This was followed by local coal-based generation that stood at 11.08pc share in September, slightly higher than 10.3pc in August and that of imported coal at 4.83pc, up from 4.51pc in August.

The total share of coal-based power generation amounted to 15.9pc in September against 14.8pc in August. In July this year, the cumulative (local and imported) coal-based generation stood at 14.69pc compared to 17.75pc share in June.

Power supply from domestic gas maintained its downward journey and contributed just 7.54pc share to the national grid in September when compared to 7.60pc in August against 7.61pc in July, 8.54pc in June, 10.35pc in May and 12pc in April.

Published in Dawn, November 9th, 2023