By Staff Reporter
ISLAMABAD: The Central Power Purchasing Agency (CPPA) has requested a negative fuel cost adjustment of around 65 paise per unit for ex-Wapda distribution companies in December bills, citing a 3.5 percent year-on-year drop in electricity consumption in October and heavy reliance on cheaper domestic fuels.
If approved by the National Electric Power Regulatory Authority (Nepra), the adjustment would return approximately Rs6.3 billion to consumers of all distribution companies, including K-Electric, through lower billing.
Nepra has scheduled a public hearing for Nov. 27 to consider the petition. In its filing, CPPA said electricity delivered to distribution companies fell 3.5 percent from October last year and was 21 percent lower than in September. A total of 9,886 gigawatt-hours (GWh) were supplied to discos during the month. The actual average fuel cost in October worked out at Rs8.72 per unit, down from Rs9.25 per unit in the same month last year and below the reference tariff of Rs9.37 per unit set earlier.
CPPA reported that 9,886 GWh were generated in October at a fuel cost of Rs84 billion (Rs8.51 per unit), while 9,630 GWh were delivered to discos at Rs83.9 billion (Rs8.70 per unit). Hydropower contributed 27.4 percent of total generation, retaining the largest share despite the seasonally low portion. Nuclear plants provided 22 percent, re-gasified liquefied natural gas (RLNG) 19.7 percent, local coal 12.76 percent, local gas 9.16 percent and imported coal 4.71 percent.
RLNG remained the most expensive major fuel at Rs21.06 per unit, followed by imported coal at Rs14.39 per unit and local gas at Rs13.36 per unit. Local coal cost Rs13 per unit. Furnace oil, which accounted for less than 0.5 percent of generation, cost Rs32.7 per unit.
Nuclear fuel cost Rs2.17 per unit. Wind, solar and bagasse together contributed 3.2 percent; wind and solar have zero fuel cost, while bagasse cost Rs10.74 per unit. Electricity imported from Iran made up 0.44 percent of the basket at Rs22.76 per unit.
Separately, the Oil and Gas Regulatory Authority (Ogra) on Tuesday notified an increase of up to 2 percent in RLNG prices at the distribution stage for November, driven by higher unaccounted-for gas (UFG) losses at both Sui companies despite a $0.75 per mmBtu drop in the average delivered ex-ship (DES) price.
Sui Southern Gas Company Ltd (SSGCL), which serves Sindh and Balochistan, recorded distribution-stage UFG of 12.55 percent, up from 10.6 percent the previous month. Sui Northern Gas Pipelines Ltd (SNGPL), serving Punjab and Khyber Pakhtunkhwa, reported distribution losses of almost 9 percent against 7.47 percent in October.
For SNGPL, the transmission-stage price fell 0.7 percent month-on-month to $11.43 per mmBtu, but the distribution-stage price rose 1.4 percent to $12.4 per mmBtu. For SSGCL, the transmission price edged up 0.07 percent to $10.065 per mmBtu while the distribution price increased 1.97 percent to $11.45 per mmBtu.
Ogra attributed the higher distribution prices to the rise in UFG percentages at both companies. The final distribution prices remain $3.3 to $4.25 per mmBtu above the average DES price for the month.
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