Web Desk, April 27, 2023: Regular increase in electricity tariff over a period of a year or so seems unable to satiate lust for more money as the ex-Wapda distribution companies (Discos) have moved to charge about Rs10 billion in additional fuel cost to their consumers at the rate of Rs1.174 per unit in May.
It may be noted that the Discos seek tariff hike despite the fact that it produced over 63 percent power from domestic cheaper fuels and unprecedented increase in base tariff in recent months. And the National Electric Power Regulatory Authority (Nepra) has accepted the petition filed by the Central Power Purchasing Agency (CPPA) on behalf of the Discos and has called a public hearing on May 3 to see if the proposed increase in tariff is justified in line with monthly fuel cost adjustment (FCA) mechanism.
If approved, the Discos would pocket an additional Rs9.93 billion from their consumers for electricity consumed in March despite a healthy 63.5pc contribution from domestic cheaper fuels.
The increase in FCA is despite the base average tariff has gone up by more than Rs7 per unit besides a series of surcharges and a reduction in the cost of import fuels like furnace oil and liquefied natural gas.
The biggest contribution to power generation came from hydropower and nuclear generation at 22.90pc each in March. Hydropower has no fuel cost while nuclear fuel cost is just Rs1.08 per unit.
After hydropower and nuclear power, the third largest generation share came from LNG-based electricity at 20.42pc in March when compared to 18.86pc in February. This was followed by a 15.3pc share from coal power plants in March when compared to 14.07pc in February. Power supply from domestic natural gas slightly improved to 12.66pc in March when compared to 11pc in February.
Interestingly, the fuel cost of furnace oil-based power generation at Rs21.27 per unit was lower than Rs24.31 per unit of RLNG-based power production. However, the authorities produced just 0.46pc share from furnace oil compared to 20.42pc from LNG.
The CPPA claimed on behalf of Discos that the consumers were charged a reference fuel cost of Rs8.22 per unit in March but the actual cost turned out to be Rs9.89 per unit, hence an additional charge of Rs1.174 per unit.