The National Electric Power Regulatory Authority (NEPRA) has notified a Fuel Charges Adjustment (FCA) of Rs 3.33 per unit for the consumers of Distribution Companies (Discos) for May 2024. This adjustment aims to recover an additional amount of Rs 42 billion under the monthly FCA mechanism. The Central Power Purchasing Agency-Guaranteed (CPPA-G) had initially sought a positive adjustment of Rs 3.41 per unit in FCAs of Discos for May 2024.
NEPRA conducted a public hearing on June 28, 2024, to discuss CPPA-G’s request for this tariff adjustment. According to the data submitted to NEPRA, hydel generation in May 2024 was recorded at 3,909 GWh, accounting for 30.96% of the total generation. This high percentage is primarily due to the early melting of glaciers. Power generation from local coal-fired power plants stood at 1,372 GWh, making up 10.87% of total generation at a cost of Rs 11.71 per unit. Meanwhile, 383 GWh were generated from imported coal at Rs 16.8193 per unit, contributing to 3.03% of the total generation.
Electricity generation from gas-based power plants was 1,110 GWh (8.80%) at Rs 13.1974 per unit, while generation from Re-gasified Liquefied Natural Gas (RLNG) reached 2,748 GWh (21.78%) at Rs 24.0113 per unit. Nuclear sources generated 2,360 GWh at Rs 1.5327 per unit, representing 18.71% of the total generation. Additionally, 50 GWh of electricity were imported from Iran at Rs 26.0901 per unit.
Power generation from bagasse was recorded at 57 GWh, costing Rs 5.9822 per unit. Wind energy contributed 445 GWh (3.53%), and solar energy accounted for 125 GWh (0.99%) of the total generation in May 2024. The total energy generated amounted to 12,617 GWh, with a basket price of Rs 8.7441 per unit and a total cost of Rs 110.324 billion.
After adjustments, including a previous adjustment of Rs 3.064 billion and the sale of electricity to Independent Power Producers (IPPs) at a negative Rs 1.161 billion, the net electricity delivered to Discos in May 2024 was 12,267 GWh. This was at a rate of Rs 9.1223 per unit, totaling Rs 111.904 billion.
The positive adjustment will apply to all consumer categories except Electric Vehicle Charging Stations (EVCS) and lifeline consumers. This adjustment will be displayed separately in consumers’ bills based on the units billed in May 2024. Discos are instructed to reflect this fuel charges adjustment in the billing month of July 2024.
In contrast, NEPRA has notified a negative adjustment of Rs 1.6716 per unit for consumers of K-Electric for April 2024. This highlights the dynamic nature of fuel charges adjustments and their impact on different consumer groups.
