Tariff hike: The electricity distribution companies have demanded Rs 4.69 per unit of electricity

The electricity distribution companies (DISCOs) have demanded Rs 4.69 per unit of electricity to get an additional Rs 64 billion as fuel cost adjustment (FCA) due to higher cost of electricity consumed in July. .

According to a report in Dawn newspaper , the National Electric Power Regulatory Authority (NEPRA) has approved the tariff petition for a public hearing scheduled on August 31.

The additional FCA demand for July by ex-WAPDA distribution companies (DISCOs) is about 53% lower than the record Rs 9 per unit hike demanded in June.

This decline is due to the substantial increase in electricity generation from cheap local fuels, particularly low-cost sources such as hydropower and nuclear power.

The Central Power Purchasing Agency (CPPA), a subsidiary of the Power Division, demanded FCA of Rs 4.69 paise per month from the DISCOs for electricity sold to consumers in July.

With the approval of this increase, the DISCOs will get about Rs 65 billion in additional funds in the billing month of September.

This additional cost adjustment is about 75% higher than the cost of fuel charged by power supply companies in July.

A review of the data shows that around 64% of electricity generation in July came from cheap domestic sources with stable prices, compared to 51% in June, 54% in May, 54% in April It was 50 percent in I and 45 percent in March.

The largest share of electricity generation in the overall power grid came from hydropower, which has no fuel costs for generation, reaching 35 percent in July, up from 24 percent in June and May.

Also, less availability of imported and expensive RLNG or regasified liquefied natural gas proved to be a boon for consumers

The CPPA has claimed that in July, consumers were charged Rs 6.29 paise per unit of fuel while the actual fuel log came to Rs 10.98 paise per unit, hence an additional charge of around Rs 4.69 paise per unit. .

These additional rates will be charged to all consumers in September after approval, except those who consume less than 50 units of electricity per month.

After hydropower, imported RLG-fired power plants accounted for the second largest share of total electricity supply in July at about 15 percent, down significantly from 24.43 percent in June and 23 percent in May.