State-owned power distribution companies (DISCOs) have requested a reduction of 31 paise per unit in fuel cost adjustment, which will give relief to consumers of around Rs 4.5 billion, in the current fiscal year’s basic tariff. 20% were received through increments.
The Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, has filed a formal request with the regulator, seeking a 31 paisa per unit (kWh) on the reference tariff of Rs 9,352 per unit charged to consumers in July. Requested for reduction.
It said the fuel cost has been Rs 9.038 per unit so it should be refunded to consumers in September bills.
The reason for the proposed reduction in the fuel cost adjustment is the 20 per cent increase in the annual base tariff effective July 1, which was projected to reflect higher fuel costs and exchange rates for the current financial year, but prices in the global market Due to the reduction, the fuel cost is reduced.
The National Electric Power Regulatory Authority (NEPRA) has called for a public hearing on the application on August 28.
In July, officials had said that about 14,880 gigawatt hours (GWh) of electricity was generated at a fuel cost of Rs 133.2 billion (Rs 8.95 per unit), of which 14,411 GWh went to DISCOs. Provided at a cost of Rs 130.2 billion (Rs 9.03142 per unit).
In July, hydropower accounted for 36 percent of electricity generation with no fuel cast, LNG accounted for 20 percent, while nuclear power accounted for 13.36 percent, local coal 10 percent and local coal 10 percent. Gas generated 7.93 percent of electricity, imported coal contributed 7.64 percent of the generation.
Electricity generated from LNG in July stood at Rs 24.88 per unit, which was Rs 26.32 in June, while the fuel cost of electricity generated from local gas stood at Rs 13.79 per unit.
On the other hand, the cost of electricity generated from domestic coal stood at Rs 11.33 per unit while the productivity of imported coal was Rs 16.20 per unit.
The three sources of renewable energy, wind, bagasse and solar, contributed a total of 4 percent to the grid in July, although wind and solar have no fuel cost, but the production cost of bagasse remained at Rs 6 per unit.
The FCA increase will be adjusted in September bills of consumers after Nepra’s approval.
