Rs 1.46 per unit increase for customers of 10 former Wapda energy companies

Power customers of ten ex-Wapda distribution firms (Discos) may be charged an extra Rs1.46 per unit due to a monthly fuel cost adjustment for July.

The Central Power Purchasing Agency (CPPA) has petitioned the National Electric Power Regulatory Authority (Nepra) to increase income for ex-Wapda Discos, whose fuel costs increased by 50.6 percent year on year in July.

In July, consumers paid a benchmark fuel charge of Rs 5.28 per kilowatt-hour (kWh), while the actual cost of fuel was Rs 6.75. On September 1, Nepra will hold a public hearing to discuss the proposed change.

According to Arif Habib Ltd analyst Rao Aamir Ali, the country posted its highest-ever electricity generation in July. “In July, power generation increased by 6.6 percent year on year to 21,076 megawatts… “The increase in the generation is attributable to increased production of nuclear, furnace oil, regasified liquefied natural gas (RLNG), wind, high-speed diesel, and bagasse,” he explained.

In July, the major sources of power generation were hydel (30%), RLNG (20%), coal (15%), nuclear (11%) furnace oil (10%), gas (9%), and wind (4pc).

In July, the country’s reliance on nuclear, furnace oil, and wind power projects rose by 132 percent, 88 percent, and 60 percent, respectively, year on year. Data reveal that electricity generation by hydel, coal, and gas decreased by 13%, 8%, and 8%, respectively, on an annual basis.

According to Mr. Ali, “the cost of fuel for power generation has increased by more than half, mainly due to increases in the prices of coal, gas, furnace oil, and RLNG”.

In July, the cost of electricity generated by coal-fired power plants increased by 33% year on year to Rs8.41 per kWh. The significant increase in coal-generated power was a direct result of a 112 percent increase in coal prices over the previous year. International coal prices have risen dramatically.

The cost of gas-generated power increased by 17 percent year on year to Rs8.17 per kWh.
In July, the fuel cost paid by RLNG-based facilities increased by 76 percent year on year to Rs12.06 per kWh. The hike was prompted by a 91 percent spike in worldwide gas prices over the previous year.

The cost of generating based on furnace oil climbed by 23 percent year on year to Rs17.08 per kWh, owing to a 40 percent increase in worldwide pricing.

In the first seven months of the current calendar year, the share of furnace oil, nuclear, and RLNG generation increased by 96pc, 42.7pc, and 17.7pc, respectively, from the previous year.

The average gasoline price in January-July stayed at Rs5.76 per unit, up 26 percent from the previous seven-month period.

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