Consumers likely to get relief of Rs0.70 per unit on electricity bills for September

This will be the third straight month that FCAs remain negative

Web Desk

23 Oct, 2024

Business & Economy

A shopkeeper sits inside his electronic repairing shop in Karachi, Pakistan, on January 10, 2021. AFP

Consumers are set to receive a relief of Rs0.70 per unit on their electricity bills due to a fuel charge adjustment (FCA) for September 2024.

The Central Power Purchasing Agency-Guaranteed (CPPA-G) has proposed a negative adjustment of Rs0.70 per unit in the FCAs for Distribution Companies (Discos) for the same month, which could result in a total refund of approximately Rs8.55 billion to consumers.

The National Electric Power Regulatory Authority (NEPRA) is scheduled to hold a public hearing on October 30, 2024, to discuss CPPA-G’s request for adjustments in Disco tariffs.

Data submitted to NEPRA indicates that hydel generation accounted for 38.75% of total electricity generation from May to September 2024, with a recorded output of 4,838 GWh. Local coal-fired power plants contributed 1,261 GWh (10.10%) at a cost of Rs12.2882 per unit, while imported coal generated 1,149 GWh (9.20%) at Rs16.5990 per unit. Generation from High-Speed Diesel (HSD) was zero, and 39 GWh was produced from Residual Fuel Oil (RFO) at Rs30.2960 per unit.

Gas-based power plants generated 988 GWh (7.91%) at Rs13.6768 per unit, and Regasified Liquefied Natural Gas (RLNG) contributed 2,039 GWh (16.33%) at Rs24.9570 per unit. Nuclear sources produced 1,596 GWh (12.78%) at Rs1.5417 per unit, while electricity imported from Iran accounted for 40 GWh at Rs25.9519 per unit.

Wind energy generation reached 395 GWh (3.17%), and solar energy contributed 105 GWh (0.84%) in September 2024. Overall, the total electricity generated was 12,487 GWh at a basket price of Rs8.3380 per unit, amounting to a total cost of Rs104.114 billion. After accounting for a previous adjustment of Rs7.505 billion and a negative sale of Rs1.402 billion from Independent Power Producers (IPPs), the net electricity supplied to Discos in September 2024 was 12,118 GWh, priced at Rs9.0949 per unit, totaling Rs110.05 billion.’

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