Rs. 1.83/unit adjustment in Electricity Tariff sought

September 20, 2023

The Central Power Purchasing Agency-Guaranteed (CPPA-G) has put forth a request for a positive adjustment of Rs 1.83 per unit in the tariff for Distribution Companies (Discos) for the month of August 2023 under the monthly Fuel Charges Adjustment (FCA) mechanism. The National Electric Power Regulatory Authority (Nepra) has scheduled a public hearing for September 27, 2023, to deliberate on CPPA-G’s proposal for tariff adjustment.

According to data presented to Nepra, the power generation landscape in August 2023 exhibited diverse sources.

Hydel generation accounted for 6,006GWh, constituting 37.63% of the total generation.
Local coal-fired power plants generated 1,638GWh, equivalent to 10.26% of the total generation, at a cost of Rs 7.00 per unit. Additionally, 719GWh was generated from imported coal at Rs 20.1430 per unit, representing 4.51% of total generation.
High-Speed Diesel (HSD) contributed nil to the generation mix, while Residual Fuel Oil (RFO) contributed 649GWh (4.07% of total generation) at a rate of Rs 33.3227 per unit.
Gas-based power plants produced 1,214GWh, accounting for 7.60% of total generation, at a cost of Rs 13.2190 per unit. Furthermore, Re-Gasified Liquefied Natural Gas (RLNG) contributed 2,741GWh (17.17% of total generation) at Rs 23.0981 per unit.
Nuclear energy sources generated 2,040GWh, constituting 12.79% of total generation, with a unit cost of Rs 1.1725.
Electricity imported from Iran amounted to 26GWh at a unit cost of Rs 25.0981.
Additionally, power generation from bagasse recorded 38GWh, with a calculated unit price of Rs 5.9822.
Renewable energy sources contributed with 805GWh (5.04% of total generation) from wind and 8GWh (0.53% of total generation) from solar in August 2023.
In summary, the total energy generated during this period reached 15,959GWh, with an average basket price of Rs 8.2654 per unit. The overall cost of energy generation was reported at Rs 131.910 billion.

CPPA-G also asked for adjustments for previous supplemental charges, amounting to over Rs 420 million, with an associated FCA cost calculated at Rs 0.0263 per unit. Based on CCPA-G data, the net electricity delivered to Discos in August 2023 amounted to 15,472 GWh at a rate of Rs 8.4746 per unit, with a total cost of Rs 131.118 billion.