The power tariff is likely to increase by Rs. 6.10 per unit as the Central Power Purchasing Agency (CPPA) has requested the National Electric Power Regulatory Authority (NEPRA) to increase the tariff on account of the monthly fuel cost adjustment (FCA) for January 2022.
The NEPRA will hold a hearing on the matter on 28 February at the CPPA’s request.
The CCPA had stated in its application that 33.15 percent of the total electricity was generated from coal and 5.83 percent through hydropower stations in January.
The share of diesel was 6.73 percent while furnace oil contributed 14.07 percent. Local gas was used to generate 14.37 percent of the electricity and LNG contributed 7.12 percent. Nuclear fuel accounted for 14.37 percent of the total production, wind comprised 2.22 percent, and bagasse contributed 1.22 percent.
Electricity imported from Iran made up 0.36 percent and solar power contributed 0.53 percent.
The most expensive electricity was generated from high-speed diesel (HSD) during January, and the cost of the electricity produced using HSD was registered at Rs. 25.98 per unit.
This was followed by furnace oil that stood at Rs. 22.80 per unit, LNG at Rs. 16.70 per unit, coal at Rs. 14.10 per unit, gas at Rs. 7.74 per unit, nuclear at Rs. 1.07 per unit, and bagasse at Rs. 5.98 per unit.
The tariff hike will have an impact of around Rs. 60 billion, including GST on the consumers for all categories of distribution companies, except for lifeline and K-Electric consumers.
Under Section 31(7) of the NEPRA Act (XL of 1997) and the mechanism for the monthly fuel price adjustment prescribed by the authority in the tariff determinations of former-WAPDA distribution companies, the authority may make adjustments in the approved tariff on a monthly basis on account of variations in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.
Consumers are already going to pay a higher rate of electricity tariff in February as the FCA determined for December 2021 was Rs. 3.10 on account of the expensive use of fuel in power plants.
Earlier in November, customers were charged Rs. 4.30 per unit on account of the FCA.
