Staff Report
ISLAMABAD:
Central Power Purchasing Agency (CPPA) has requested National Electric Power Regulatory Authority (NEPRA) to increase the power price by Rs 1.47 per unit on account of fuel cost adjustment of the month of July 2021.
As per details, CPPA, on behalf of power distributing companies (DISCOs) except K-Electric, has requested NEPRA to increase the electricity price by Rs 1.4687/kWh over the reference fuel charges i-e Rs 5.2798/unit under the head monthly fuel cost adjustment of July 2021.And, NEPRA is scheduled to hold a hearing in this regard on 1st September 2021.
Earlier, the NEPRA approved Rs 5.27/unit as Reference Fuel Cost (RFC) for month July 2021. However, the CPPA has now informed the authority (NEPRA) that actual fuel cost remained at Rs 6.74/unit in said month of July 2021.
According to CPPA, total power production in the month of July 2021 was 15 billion and 21 crore units as power generation with hydel source was 29.94percent of the total generation, while 15.209pc of the electricity production with coal source and 10.28% power generation was with expansive furnace oil. Similarly, power generation with local gas was 8.68%, and it was 20.01% with imported Liquefied Natural Gas (LNG), while 10.59% with nuclear source, 3.51% with wind source, solar 0.39%, baggasse 0.29% and High Speed Diesel (HSD) 0.79% of the total power production in the month of July 2021.
Pursuant to section 31(7) of the NEPRA Act (XL of 1997) and the mechanism for monthly fuel price adjustment prescribed by the Authority in the tariff determination of Ex-WAPDA distribution companies, the Authority may on monthly basis make adjustment in the approved tariff on account of any variations in the fuel charges and policy guidelines as the federal government may issue and notify the tariff so adjusted in the official gazette.
NEPRA, in a public notice, has invited all the interested/affected parties to raise written/oral objections as permissible under the law at the public hearing.
