The National Electric Power Regulatory Authority (Nepra) has increased power Distribution Companies (Discos) tariff by Rs 4.85 per unit for February 2022 under monthly Fuel Charges Adjustment (FCA) mechanism.

According to the determination, the Authority reviewed the information provided by CPPA-G seeking monthly FCA and due diligence was done accordingly. From perusal of the information provided by CPPA-G, the actual pool fuel cost for the month of February 2022 was Rs9.1957/kWh, against the reference fuel cost component of Rs4.2516/kWh. The actual fuel charges, as reported by CPPA-G for the month of February 2022, increased by Rs4.9441 kWh as compared to the reference fuel charges.

The Authority conducted hearing on March 31, 2022 which was attended by representatives of CPPA-G, National Power Control Centre (NPCC), NTDC, and the general public.

During the hearing, the Authority observed that energy from costlier RFO based power plants was generated to the tune of over Rs 11.301 billion during the month of February 2022.

The Authority has been directing NPCC/NTDC & CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from Economic Merit Order (EMO), showing hourly generation along-with the financial impact for deviation from EMO, if any, and the reasons, thereof.

During the hearing NPCC/NTDC explained that due to non-availability of RLNG as per the requirements, electricity was generated through RFO/HSD based power plants. Upon directions of the Authority NPCC/NTDC also provided justifications, showing hourly generation along-with the reasons for operation of HSD/RFO. The Authority decided not to deduct any amount in the instant monthly FCA on account of deviation from EMO.

The Authority has directed CPPA-G to provide technically/financially verified data of each generation company pertaining to previous month along-with its next monthly FCA request, in order to ensure that any required adjustments are made in a timely manner.

The story was originally published in Business Recorder on April 16, 2022.