Discos seek hike in fuel adjustment cost

ISLAMABAD: Ex-Wapda distribution companies (Discos) have sought about 22 paisa per unit increase in consumer tariff on account of monthly fuel price adjustment due to higher than estimated power generation cost. The National Electric Power Regulatory Authority (Nepra) on June 26 will hold a public hearing on a petition for increase in consumer tariff for ex-Wapda Discos on account of fuel cost adjustment of electricity consumed in May. The higher electricity rates, on approval by the regulator, would be recovered from consumers in the upcoming billing month i.e. July 2019. The Central Power Purchasing Agency (CPPA) on behalf of the Discos claimed an additional cost of 22 paisa per unit under base tariff 2015-16. The CPPA in its petition said it had charged consumers a reference tariff of Rs5.046 per unit in May while the actual fuel cost turned out to be Rs5.25 per unit and hence it should be allowed to recover 22 paisa per unit additional cost from consumers next month. Total energy generation from all sources in May 2018 was recorded at 12,603 GWH. The total cost of energy generated amounted to Rs63.78 bn, having an average per unit fuel cost of Rs5.06.31 per unit. About 12,219 Gwh were sold to the Discos for Rs64.28bn. The hydropower generation contributed the highest share of about 30 per cent to the overall power production in May. This was followed by about 29pc contribution from RLNG based power generation while locally produced gas based electricity production achieved third position with 16.3pc share in total power supply. Published in Dawn, June 22nd, 2019

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