CPPA-G Seeks Rs1.73 Per Unit Fuel Cost Adjustment

Pakistan’s power generation mix during the month included 1,528 GWh from hydropower, representing 10.22% of total electricity generation, while RLNG-based plants produced 1,311 GWh, or 8.78%.

Gas-fired power plants generated 1,052 GWh, accounting for 7.04% of total generation. Wind power contributed 833 GWh, equivalent to 5.58%.

RFO-based plants produced 321 GWh, representing 2.15% of total generation, while HSD-based plants generated only 80 GWh, or 0.54%.

Electricity imported from Iran contributed 59 GWh, equal to 0.39%, while solar power generated 112 GWh, accounting for 0.75%. Bagasse-based plants contributed another 36 GWh, or 0.24%.

The overall generation mix resulted in an energy generation cost of Rs149.596 billion, with an average generation cost of Rs10.0114 per unit.

Several adjustments were subsequently made to determine the amount applicable under the Fuel Cost Adjustment (FCA). A previous adjustment reduced the amount by Rs10.097 billion, while an RLNG fuel-rate adjustment resulted in another reduction of Rs10.617 billion.

Data from the Central Power Purchasing Agency-Guaranteed (CPPA-G) also included Rs1.217 billion related to electricity sold to independent power producers (IPPs). After all these adjustments, the net amount stood at Rs127.665 billion, translating into an average cost of Rs8.8265 per kWh for electricity ultimately delivered to distribution companies.

Of the total 14,943 GWh generated during the month, 21 GWh was recorded as electricity sold to IPPs, while 458 GWh was classified as transmission losses.

After accounting for these quantities, net electricity delivered to distribution companies stood at 14,464 GWh, equivalent to 96.80% of total generation.

CPPA-G has requested an FCA of Rs1.7267 per unit. This amount represents the difference between the net applicable fuel charge included in its request and the notified reference fuel charge of Rs7.0998 per unit.

At a simple mathematical level, applying Rs1.7267 to 14.464 billion units of net delivered electricity would produce approximately Rs24.98 billion. However, actual consumer recovery through the FCA cannot be calculated by simply multiplying the requested rate by net generation, as FCA recovery depends on applicable billed units and the regulatory treatment of different consumer categories.

According to NEPRA, the applicable legal framework and monthly fuel-price adjustment mechanism allow the Authority to adjust approved electricity tariffs based on changes in fuel costs.

The notice further states that the FCA determined for XWDISCOs will also apply to K-Electric consumers in accordance with federal government policy guidelines governing the uniform application of fuel cost adjustments.