Hike in electricity tariff by Rs1.32 per unit suggested by CPPA

ISLAMABAD: Central Power Purchasing Agency (CPPA) has advised an increase of Rs1.32 per unit in power tariff, under fuel price adjustment for the month of May for Ex-Wapda Discos.

As per formal request submitted by CPPA with Nepra, total energy generated in May 2018 was 12117.67 Gwh at a total price of Rs75.872 billion which is Rs6.2613 per kWh.

The net electricity delivered to power distribution companies (Discos) was 11896.75 Gwh at cost of Rs78.665 billion or 6.6123 per kWh. Out of total electricity generation, losses stood at 1.82%, however, the total losses in April were 2.54%.

Since the actual cost of generation was Rs6.62 per unit in the period under review against reference price of Rs5.29 per unit therefore CPPA has requested an increase of Rs1.32 per unit.

As per petition, total generation from hydel sources was 2217.61 Gwh, which accounted for 18.30 percent of total generation. The share of hydropower production in the overall energy mix in May was improved a bit from around 15.07 percent in April.

In May 2338.23 Gwh Residual Fuel Oil (RFO) based electricity produced at a cost of Rs12.47 per unit and its share was 19.30 percent of total generation. In April the power generation from furnace oil-based power plants was 15.30 percent at a cost of Rs11.22 per unit.

The total share of gas based electricity was 1971.34 GWh accounting for 16.27 percent of total generation and its cost of electricity was Rs4.84 per unit. In April total share of gas based electricity was 16.24 percent at a cost of Rs 5.06per unit.

The generation from imported Liquefied Natural Gas (LNG) also contributed. In May the overall energy contribution from coal was 1468.95 Gwh which accounts for 12.12 percent of total generation and its cost was 5.76 per unit. In April the generation from coal was 13.83 percent and its fuel cost of generation stood at Rs6.44 per unit.

The nuclear power plants contributed 656.17 Gwh or 5.41 percent of electricity with a cost of Rs 1.02 per unit. In April the share of nuclear based electricity was 8.25 percent with the cost of Rs 1.04 per unit.

The electricity imported from Iran was 53.63 GWh at a price of Rs11.57 per unit and its total share in generation was 0.44 percent.

The CPPA, in its petition said that it had not purchased any HSD based electricity during the May.

On the basis of the above data the CPPA has proposed an increase of Rs1.32/kWh over the reference fuel charges, that is Rs5.29 kWh for the month of May. The Nepra will conduct hearing on the petition on June 27.