CPPA seeks Rs2.11/unit hike in August power bills

ISLAMABAD: In a move that could further strain inflation-hit electricity consumers, the Central Power Purchasing Agency (CPPA) has requested approval from the National Electric Power Regulatory Authority (Nepra) for additional collection of Rs2.11 per unit from power consumers in August 2024 bills.

CPPA filed the petition on behalf of Ex-Wapda Discos (XWDiscos), is based on the monthly fuel charges adjustment (FCA) for June 2024. Nepra has accepted the petition and scheduled a public hearing for July 31, 2024, to finalize the decision.

If Nepra allows the additional charges, it will apply to all consumer categories except for electric vehicle charging stations (EVCS) and lifeline consumers of all Discos. The petition indicated that the reference fuel charges for June were Rs7.1403 per unit, while the total cost per unit amounted to Rs9.2457. The CPPA-G is seeking approval to pass on an increase of Rs2.1054 per unit to consumers.

The CPPA’s application detailed that a total of 13,458 gigawatt-hours (GWh) of electricity was generated using various fuels in June, costing Rs122.6 billion. Of this, 13,070 GWh was delivered to Discos.

The petition also noted that electricity generated from furnace oil cost Rs31.61 per unit, imported electricity from Iran was priced at Rs26.66 per unit, and generation from RLNG-based power plants cost Rs24.78 per unit. If Nepra approves the proposed increase, consumers will face an additional Rs30 billion, including GST, on their August bills.

The generation cost in June 2024 decreased by 10.55 per cent (Or Rs1.016/unit) to Rs8.6135 per unit against Rs9.63 per unit in June 2023. Compared to the May 2024 cost of Rs8.744 per unit, in June 2024, the cost was reduced by 1.5 per cent.

Power generation figures reveal an 8.5 per cent increase to 1,489 GWh from local coal while the generation from imported coal was 637GWh compared to 383GWh in May 2024.

In June 2024, hydropower generation increased by 14.4 per cent to 4,729GWh, while coal (local and imported)-based generation declined by over 12.65 per cent. Natural gas-based power generation fell to 1,166GWh from 1,171GWh in same month of last year.

RLNG-based generation down to 2,437GWh in June 2024 from 2,544 in June 2023. Nuclear power saw an increase to 1,998GWh against 1,857GWh in same month of last year. No electricity was generated from the high-speed diesel. However, RFO-based generation was 263GWh against 744GWh in June 2023.