ISLAMABAD: Public sector power companies have proposed a 63-paisa per unit negative Fuel Cost Adjustment (FCA) for November, citing a 6% year-on-year increase in electricity demand. If approved by the National Electric Power Regulatory Authority (NEPRA), the ex-WAPDA Distribution Companies (Discos) would refund approximately Rs2.5 billion to consumers in January 2025.
The average fuel cost for November consumption was Rs7.23 per unit, significantly lower than Rs9.44 per unit in November 2023, attributed to increased reliance on domestic fuel sources and higher base tariffs implemented in July 2024. Over 82.3% of the power supply during the month came from local fuel sources, nearly half of which incurred zero fuel cost.
Key Highlights:
Electricity Generation: 8,032 GWh produced at Rs58.49 billion (Rs7.28 per unit). Of this, 7,716 GWh was delivered to Discos at Rs55.76 billion (Rs7.23 per unit).
Fuel Mix Contribution: Hydropower accounted for 35.61% of supply, followed by nuclear power (20.61%), local coal (12.68%), and RLNG (11.29%). Hydropower incurred no fuel cost.
Decline in Costs: November’s fuel cost was 23.5% lower than the same month last year due to higher contributions from local fuels and a revised base tariff.
Electricity Demand: Consumption grew by 5.9% compared to November 2023 but dropped by 23% from October, influenced by seasonal temperature changes.
The Central Power Purchasing Agency (CPPA) petitioned NEPRA for the FCA adjustment, noting that power companies had charged Rs7.86 per unit in November, exceeding the actual cost of Rs7.23 per unit. The adjustment is proposed to be applied in January 2025 bills.
NEPRA has scheduled a public hearing on December 31 to deliberate on the petition. If approved, this would mark the fifth consecutive month of negative FCAs, a trend driven by substantial domestic fuel contributions and efficient tariff adjustments.
Story by Khaleeq Kiani
