Islamabad August 22 2023: Based on information from the Central Power Purchasing Agency Guarantee Limited (CPPA-G), NEPRA is poised to raise electricity rates by PKR 2.0703 per unit for July 2023 due to the high fuel cost adjustment (FCA).
As per CPPA's data, the actual fuel charges for EX-WAPDA DISCOs in July 2023 amounted to PKR 8.9638 per unit, marking a PKR 2.0703 per unit increase from the reference tariff.
Throughout the month, there was a 22.1 percent year-on-year decrease in fuel expenses, which can be credited to a larger proportion of hydropower, notable cost reduction in coal-based generation, and diminished reliance on furnace oil-based generation. The nation generated 295 GWh of electricity using expensive residual fuel oil (RFO) in comparison to 877 GWh generated during the same period last year. The cost of electricity generation from RFO in July 2023 was PKR 28.73 per unit, contrasting with PKR 35.7 per unit in the same month the previous year.
Electricity generation costs from coal decreased by 42.9 percent in July 2023 due to a 21.0 percent increase in coal-based generation to 2,180 GWh.
In July 2023, electricity generated from RLNG-based power plants cost PKR 24.43 per unit, which is 13.6 percent lower compared to the previous year.
Nevertheless, NEPRA has established a reference fuel price of PKR 6.8935 per unit for EX-WAPDA DISCOs in July 2023, following CPPA-G's proposal.
The final decision by NEPRA is expected on August 30th, after considering input from all stakeholders.