ISLAMABAD: Electricity distribution companies have demanded an increase of more than 7.96 rupees per unit, to be reflected in July bills, due to the high cost of electricity generated from diesel and fuel oil for May .

The Central Power Purchasing Agency (CPPA) has filed an application with the electricity sector regulator stating that the total cost of generating electricity from various sources during the month of May was Rs 13.8969 per unity.

However, it was Rs 7.96 above the benchmark of Rs 5.93 per unit set by the National Electric Power Regulatory Authority (Nepra) for fuel adjustment charges.

The CPPA is a market operator facilitating the transition of the electricity market from the current single buyer to a competitive market, and among its responsibilities is the supply of electricity on behalf of the electricity distribution companies (Discos) .

In accordance with legal requirements, Nepra convened a public hearing on the matter on June 27, and all concerned institutions and citizens were invited to the hearing to present their views, mainly against the demands of the CPPA.

But traditionally CAPP’s claims for fuel price adjustments are accepted by the regulator because it is difficult to prove that the high fuel cost was due to negligence or mismanagement on the part of the regulator. ACPP.

The application filed by CAPP highlighted that the most expensive electricity was generated from fuel oil at a rate of Rs 33.67 per unit, and the cost of electricity generated from diesel at large speed (HSD) was 30.09 rupees per unit.

While heating oil and HSD accounted for only 8.99% of the total electricity generated in the country, the high cost of producing regasified liquefied natural gas (RLNG) pushed the overall energy basket rate higher .

The cost of electricity generated from the RLNG was Rs 27.92 per unit, which represents 22.89% of the total electricity generation in the country.

By comparison, the cost of coal-generated electricity was Rs 18.01 per unit, but coal accounted for only 13.77% of total electricity generated in May.

Nuclear power stations were the country’s cheapest source of electricity for the month, costing Rs 1.05 per unit and providing almost 13% of net consumption.

During the month, Pakistan imported a very small amount of electricity from Iran, mainly for the border areas of Balochistan at a price of Rs 18.95 per unit, and a limited percentage of electricity was generated from power stations. captive electric sweets at Rs5. 98 per unit.

CAPP also informed Nepra that there was no power generation from hydroelectric, wind or solar sources in May due to negligible flow from the dams and unfavorable weather conditions.

Meanwhile, in a statement, All Pakistan CNG Association (APCNGA) group leader Ghiyas Abdullah Paracha criticized policymakers for not allowing the private sector to import LNG.

Mr. Paracha said that the CNG sector is the only sector that can import LNG for its own consumption, and with the possibility of having long-term contracts, the sector can import LNG at cheaper rates, which can also be supplied for power generation.

The leader of the APCNGA group said this would help reduce the overall electricity tariff in the country.

Posted in Dawn, June 19, 2022