National Electric Power Regulatory Authority (Nepra) on Tuesday disclosed that K-Electric’s (KE’s) own average power generation is over 300 per cent costlier at Rs 37.74 per unit as compared to Rs 10 per unit of CPPA-G.
These statistics were shared by the regulator at a public hearing held to determine financial impact of Fuel Charges Adjustment (FCA) for September 2022. KE had sought negative adjustment of Rs 4.622 per unit to refund Rs 7.740 billion to its consumers on the basis of reference price of June 2022 verses September 2022.
However, during the hearing officiated by Chairman Nepra, Tauseef H Farooqi, Member Sindh Rafique Ahmad Shaikh and Member KP Maqsood Anwar Khan and Nepra’s tariff team headed by Mubashir Bhatti assisting the Authority has calculated negative adjustment of Rs 4.707 per unit (Rs 7.844 billion). The negative impact can be further increased if Economic Merit Order (EMO) adjustment of Rs 717 million on account sought by power utility is either not approved or partially approved.
KE team comprising CFO, Aamir Ghaziani, Director Finance, Ayaz Jaffer Ahmed and technical team responded to the questions raised by the Authority and consumers’ representatives.
Ayaz Jaffer informed the Authority that negative impact of mix variance has been calculated at Rs 2.635 billion whereas negative impact of Rs 5.821 billion was on account of price.
According to Nepra’s team, KE’s average cost of external purchases stood at Rs 13.12 per unit, of which price of electricity being purchased from CPPA-G is Rs 10.01 per unit, Lotte Chemical is Rs 40.11 per unit, M/s Tapal Rs 33.21 per unit, M/s Gul Ahmed Rs 34.43 per unit, M/s IIL Rs 10.70 per unit, IISL Rs 10.65 per unit, FFBL, Rs 23.28 per unit, SPC 1&II with losses Rs 7.14 per unit and Lucky Cement Ltd. Rs 9.56 per unit.
The average cost of generation of KE’s own plants is as follows: (i) Bin Qasim-1, unit-1 Rs 44.14 per unit, unit-2 Rs 43.37 per unit, unit-5, Rs 43.10 per unit, unit-6, Rs 43.91 per unit;(ii) Bin Qasim unit-II 560 MW, Rs 30.14 per unit;(iii) KTGPS, Rs 32.75 per unit;(iv) SGTPS, Rs 32.94 per unit; and (v) Korangi Combined Cycle Power Plant, Rs 42.67 per unit and BQPS-III, Rs 22.30 per unit.
