The Water and Power Development Authority’s (WAPDA) former distribution companies (XWDiscos) have appealed to the National Electric Power Regulatory Authority (NEPRA) to approve an additional charge of Rs1.829 per unit for consumers in October. The Central Power Purchasing Agency (CPPA) is spearheading this request, having lodged a petition to increase the tariff by this margin to cover the August 2023 Fuel Cost Adjustment (FCA).
In August, consumers were billed at a rate of Rs6.6457 per unit, yet the actual fuel cost was Rs8.4747 per unit, leading the CPPA to propose that this extra expenditure of Rs1.829 per unit be passed on to the consumers. This proposal, set for a public hearing on September 23, could have a substantial financial impact, amounting to over Rs25 billion.
Breakdown of August 2023 Power Generation and Costs
In August 2023, the power generation exhibited a significant surge of 13.57% year-on-year, with 15,959 GWh produced at a total expense of Rs131.91 billion, equating to Rs8.2654 per unit. This also marked a 7.5% increase from July 2023. Distribution companies received 15,472GWh, costing Rs131.118 billion, or Rs8.4746 per unit, with transmission losses reported at 2.87%. Notably, the generation cost had decreased by 15.75% from August 2022 despite a slight monthly increase of 1.63%. This reduction was due to lower prices for coal, furnaces, and regasified liquefied natural gas (RLNG), which fell by over 50%, 6.4%, and 4.13%, respectively.
The energy mix also shifted with an increase in low-cost renewable energy sources. Hydropower generation swelled by 12.2%, nuclear by 8.86%, solar by 14.4%, and wind by 106% compared to August 2022. On the other hand, RLNG generated 2,741GWh for Rs23.715 per unit, and nuclear power plants produced 2,040GWh, costing Rs1.1725 per unit. Coal-based generation experienced an 8.77% growth, culminating in 2,357 GWh at an average cost of Rs13.57 per unit.
Regarding costs, coal-based electricity production observed a fluctuation, with August 2023 witnessing a decrease compared to the previous year yet showing an increase from July 2023. Meanwhile, natural gas contributed 1,214GWh at Rs13.22 per unit, and furnace oil powered 649GWh at Rs33.32 per unit.
In the same month, no electricity was generated using high-speed diesel, while power importation from Iran amounted to 26 GWh, costing Rs25.1 per unit. The energy sector also saw contributions from alternative sources like bagasse, which generated 38GWh at Rs5.982 per unit, and renewable wind and solar energy, contributing 805GWh and 84GWh, respectively to the national grid.
