Fuel cost adjustment of Rs3.5 more per unit to further inflate bills – Business


ISLAMABAD: The Cen­tral Power Purchasing Agency (CPPA) on Mon­day sought an enormous Rs3.55 per unit as gas cost adjustment (FCA) for ex-Wapda distribution comp­anies (Discos) to elevate one other Rs33bn from shoppers in Dece­mber,
des­pite a wholesome 76 per cent ele­ctricity technology from cheaper home fuels.

This comes on high of about 26pc enhance within the annual base tariff and round 18pc hike beneath the presently applied quarterly tariff adjustment (QTA).

This signifies that shoppers would profit little from low consumption in December, as they might be charged such a giant FCA quantity on the comparatively larger quantity of items consumed in October. This is principally due to the CPPA claiming over Rs28bn for some previous changes, leading to an extra cost of Rs2.95 per unit, as an alternative of simply 59 paise for the technology cost in October.

In a petition filed earlier than the National Electric Po­wer Regulatory Autho­rity (Nepra), the CPPA appearing as business agent of the Discos demanded an extra FCA of Rs3.54 per unit in billing month of December for electrical energy consumed in October. Nepra has accepted the petition and scheduled public hearings on November 29.

The enhance in FCA is even if base common tariff has risen by about Rs7.5 per unit since July 1. The further cost is notable even because the nation’s cheaper home fuels produced about 76pc of the general energy provide in September.

Hydropower’s contribution to the nationwide grid decreased to 32.54pc in October from 37.6pc in August and September. LNG-primarily based energy technology elevated to 20.25pc, securing the second place, up from 16pc in September. Nuclear energy’s contribution fell to 19pc in October, rating third.

Local coal-primarily based technology was about 14pc in October, up from 11.08pc in September. The whole share of coal-primarily based energy technology elevated to 17.5pc in October from 16pc in September. Power provide from home gasoline declined to 7.35pc in October from 7.54pc in September.

LNG-primarily based energy technology cost barely decreased to Rs23.7 per unit in October from Rs24.2 in September. The cost of energy technology from home gasoline barely elevated to Rs13.6 per unit in October, barely larger than Rs13.52 per unit in September.

The cost of native coal-primarily based technology elevated by 58pc to Rs12 per unit in October from Rs7.6 per unit in September. The cost of imported coal-primarily based technology decreased to Rs13.3 per unit in October from Rs15.79 in September and Rs20 per unit in August.

Renewable vitality sources contributed about 3.1pc in October, down from a 3.9pc in September. Wind and photo voltaic don’t have any gas cost, whereas bagasse-primarily based technology cost remained unchanged at about Rs6 per unit.

The CPPA, on behalf of Discos, claimed shoppers have been charged a reference gas cost of Rs7.89 per unit in October, however the precise cost was Rs8.4 per unit.

With previous claims of Rs28.3bn (Rs2.96 per unit), the overall gas cost was claimed at Rs11.43 per unit, requiring an extra cost of Rs3.54 per unit.

Upon Nepra’s approval, the elevated FCAs could be adjusted in shoppers’ bills within the upcoming billing month of October.

Published in Dawn, November twenty first, 2023

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