ISLAMABAD – The Central Power Purchasing Agency-Guaranteed (CPPA-G) has proposed refunding Rs 2.6 billion to power Distribution Companies (Discos) consumers for October 2024 under the monthly Fuel Charges Adjustment (FCA) mechanism.
During a public hearing chaired by NEPRA Chairman Waseem Mukhtar, CPPA-G representative Naveed Qaisar revealed that the FCA variation for October was recorded at Rs 9.2583 per unit, compared to the reference rate of Rs 10.2752 per unit. This indicates a reduction of Rs 1.0159 per unit, resulting in a financial impact of Rs 10.14 billion.
Qaisar explained that since Rs 1.28 per unit was recovered in November 2024, the adjustment will lower this to Rs 1.02 per unit in December, providing a net benefit of 26 paisas per unit to consumers, with an overall impact of Rs 2.6 billion.
Concerns Over Previous Adjustments
During the session, business representative Aamir Sheikh questioned adjustments granted to two sugar mills, noting their rates had been reduced to Rs 5.8418 per unit from over Rs 12 billion. CPPA-G clarified that claims from bagasse Independent Power Producers (IPPs) had been shared with NEPRA and would be reviewed in line with revised rates.
Energy Generation Trends
Deputy Manager CPPA-G Mubashir Hussain reported that energy generation in October 2024 exceeded projections by 3%, with year-on-year growth of 6.77%. However, generation decreased by 18% compared to September 2024, contributing to a 5.43% drop in energy generation during the fiscal year.
Peak generation on October 2 reached 19,373 MW, significantly higher than the 16,968 MW recorded in October 2023. The lowest generation was noted at 10,936 MW on October 5, 2024, compared to 8,508 MW on October 17, 2023.
The hearing highlighted ongoing efforts to ensure transparency and consumer relief in power tariffs through the FCA mechanism.
Story by Mushtaq Ghumman
