ISLAMABAD: In the January bills, the National Electric Power Regulatory Authority (Nepra) announced a negative fuel cost adjustment (FCA) of 49 paise for K-Electric customers and 76 paise per unit for former Wapda distribution companies (Discos) on Tuesday.
Customers of KE in October and Discos in November were granted reimbursements.
The regulator raised the 27-paisa per unit reimbursement that the KE had suggested for October consumption to 49-paisa. However, the 63-paisa return that Discos had suggested was raised to 76-paisa.
Fuel price fluctuations worldwide and changes in the generation mix result in fuel charge modifications for utilities. According to the announcement, all consumer categories will be affected by the negative FCA, with the exception of domestic consumers that utilize less than 300 units per month, prepayment metering customers, and electric vehicle charging stations (EVCS).
Orders to investigate the delay of the Lahore North Line
Regardless of their consumption level, household customers with Time of Use (ToU) meters are similarly subject to the modification due to monthly FCA.
instructed to probe against NTDC
The High Voltage Direct Current (HVDC) transmission line from Matiari-Sindh to Lahore in Punjab was used at a rate of about 20%, according to Nepra’s order. It also stated that if the Lahore North line had been completed on time, the HVDC line’s usage would have increased by about 300MW, which might have been advantageous to the consumers.
In light of the delay in finishing the Lahore North Line, it has therefore chosen to open an investigation against the National Transmission and Despatch Company (NTDC). The rising trend in Part Load Adjustment Charges (PLAC) also alarmed the regulator. “Noted a persistent upward trend in PLAC, which increased from Rs18.703bn in 2019-20 to Rs55.671bn in 2023-24,” the Nepra said, adding that the Power Purchaser and System Operator (SO) need to continue to be proactive in monitoring load trends throughout the day and at different periods of the year.
To guarantee more effective resource use, the CPPAG could suggest tactics in conjunction with SO, such as optimizing Time of Use (TOU) rates and timings. By improving system balance, this can lessen the requirement for power plants to operate inefficiently at partial loads, which will ultimately result in lower PLAC costs.
The Energy Purchase Price (EPP) of Rs21.93 per unit for Thar Coal Block-I Power Generation Company (Pvt) Limited, a plant that uses indigenous Thar coal, was another issue raised by the regulator. On the other hand, Port Qasim’s EPP for imported coal stayed at Rs15.74 per unit, mainly because fewer Thar coal power plants were being used.
According to the report, the EPP for Thar coal power stations accounts for the fixed costs related to the coal mines as well as fuel prices and variable O&M expenses. When the plants run at part load, these fixed expenses raise the EPP per unit. On the other hand, higher plant utilization makes it possible to distribute these fixed costs more effectively, which lowers the EPP per unit.
