The annual base tariff has increased by almost 26%, and quarterly adjustments by Discos have increased by about 18%, but Pakistan’s electricity prices are still rising.
Discos Are Asking For Additional Rs. 1.83 Per Unit in FCA
As the former Wapda Distribution Companies (Discos) are asking for an additional PKR 1.83 per unit in fuel cost adjustments (FCA), hoping to extort an additional PKR 30 billion from customers next month.
This is despite the fact that more than 74% of the nation’s energy needs are being met by locally available, less expensive fuels like hydro, coal, gas, nuclear, wind, solar, and bagasse.
According to a newspaper agency, Discos have jointly petitioned the National Electric Power Regulatory Authority (Nepra) for an additional FCA of PKR 1.83 per unit in the billing month of October for electricity used in August.
Discos are represented by their commercial agent, the Central Power Purchasing Agency (CPPA).
Nepra has accepted the petition and set public hearings for September 27 to evaluate the proposed tariff increase in accordance with FCA processes and the economic merit order.
FCA Hikes in Electricity Bills
According to reports, the hike in FCA comes despite a PKR 7.5 per unit increase in the base average rate, which took effect on July 1.
A further PKR 5.40 per unit quarterly tariff adjustment (QTA) worth PKR 146 billion is also under consideration, with the regulator having already concluded the public hearing procedure.
This sum might be recovered over six months at a rate of PKR 3.55 per unit, rather than the previously projected PKR 5.40 per unit over three months.
Contribution of Different Sources In Producing Electricity
Hydropower plants contributed over 38% to the national power system in August, the highest percentage in months, compared to 37% in July and 26.96% in June. Hydropower does not require any fuel.
Meanwhile, LNG-based power generation accounted for 17.17% of total generation in August, down from 19.67% in July and 18.55% in June.
Nuclear power plants contributed 12.79% in August, down from 14.22% in July and 13.54% in June.
Local coal-fired generation accounted for 10.3 percent of total generation, while imported coal-fired generation accounted for 4.51 percent.
To read our blog on “NEPRA okays to charge Rs. 1.46 FCA in Sept electricity bills,” click here.
