- Official figures reveal a 7.5pc decrease in power demand for March, 11.3pc for year
- Officials say power generation through GCPP could have benefitted consumers of Rs580m
ISLAMABAD: Power consumers may endure an additional financial burden of approximately Rs23 billion as the National Electric Power Regulatory Authority (NEPRA) has completed hearing on a request pertaining to Fuel Charges Adjustment (FCA) for electricity consumed in March 2024.
Though NEPRA has reserved its decision on the FCA for March 2024 sought by the power distribution companies (DISCOs), it is anticipated that the power regulator will adhere to past practices and approve the collection of Rs23 billion from already burdened electricity consumers through the May 2024 electricity bills.
According to NEPRA, the authority will issue a detailed decision after thoroughly scrutinizing the facts and figures.
Earlier, Central Power Purchasing Agency (CPPA) submitted an application to the National Electric Power Regulatory Authority (NEPRA) on the request of distribution companies (DISCOs) to increase the electricity price by Rs2.9402 per kilowatt hour (kWh) under the head Fuel Charges Adjustment (FCA) of March 2024. And, following this request, the NEPRA called a public hearing on April 26, 2024.
NEPRA chairman Waseem Mukhtar while presiding over the hearing on FCA of March 2024 said that electricity demand has been decreasing consistently.
During the hearing, NEPRA’s Member Sindh highlighted consumer shifts to solar electricity due to the high cost of electricity.
Additionally, officials from the National Power Control Center (NPCC) reported a 7.5 percent decrease in power demand in March 2024.
Over the year, domestic consumer demand fell by 11.3 percent, and the industrial sector by 4.5 percent, according to CPPA officials.
NEPRA officials pointed out that power consumers could have been benefitted of up to Rs580 million had electricity been generated through the Guddu Combine Power Plant (GCPP).
Upon this, NEPRA’s Member Sindh emphasized that NEPRA had received numerous complaints regarding violations of the economic merit order of power plants and assured that NEPRA was reviewing these complaints.
Officials from the National Transmission and Despatch Company (NTDC) informed NEPRA that electricity demand decreased by seven percent in March 2024.
The CPPA, in its application, claimed that the total electricity generated with various fuels in March 2024 was recorded a 8,023 GWh, at Rs8.3109 per unit. The total cost of energy was Rs66,680 million.
The power generation with the hydel source was 2,217 GWh (gigawatt per hour) constituting 27.63 percent with zero cost of power generation while power production with coal-fired power plants was 862 GWh (local coal) and the total power generated for Rs14,459 million (Rs16.7779/unit).
Similarly, the power generation from gas-based power plants was 795 GWh, 9.91 percent of the total generation, totaling Rs13.6857 per unit and the generation from Re-gasified Liquefied Natural Gas (RLNG) was 1,658 GWh, which was 20.67 percent of total generation, at Rs22.1917 per unit.
Likewise, power production from bagasse was recorded at 78 GWh, the price of which has been calculated at Rs5.9822 per unit. The electricity generated from wind was recorded at 205 GWh, 2.55 per cent of total generation and solar at 110 GWh, 1.37 per cent of the total generation in March 2024.
Moreover, electricity generation from nuclear sources was 2,070 GWh which came out at Rs1.5488 per unit, 25.79 per cent of the total generation, and electricity imported from Iran was 28 GWh amounted to Rs30.3729 per unit, 0.35 per cent of the total power generation in the said month of March 2024.
It is also learnt from the data submitted by the CCPA with NEPRA that net electricity delivered to DISCOs in March 2024 was 7,756 GWh (96.67pc) at a rate of Rs9.3819 per unit, the total price of which was Rs72,764 million.
It is relevant to note that monthly fuel charges adjustment will be applicable to all consumers of DISCOs except the power consumers of K-Electric, lifeline and electric vehicle charging stations.
Besides, in the February adjustment, NEPRA had increased the price of electricity by Rs4.92 per unit, while in the January fuel charges adjustment, the price of electricity was increased by Rs7.6 per unit.
