ISLAMABAD: Power distribution companies have moved to pass on a relief of about Rs5.6 billion to electricity consumers by seeking a 72 paisa per unit negative fuel cost adjustment (FCA) for November’s power consumption, to be reflected in January electricity bills, despite heavy reliance on cheaper domestic energy sources.
The Central Power Purchasing Agency (CPPA) has filed a petition with the National Electric Power Regulatory Authority (Nepra), which has scheduled a public hearing on December 31 to review the request. If approved, the refund will apply to consumers of ex-Wapda distribution companies (Discos) as well as K-Electric.
According to CPPA, electricity consumption in November was 1.25 percent higher than the same month last year but around 18 percent lower than in October. A total of 7,813 gigawatt-hours (GWh) of electricity was delivered to Discos during the month.
The agency reported that the average fuel cost of power generation declined sharply to Rs6.16 per unit in November, compared with Rs8.72 per unit in October and Rs7.23 per unit in November last year. The reference fuel cost for November had been set at Rs6.88 per unit, resulting in a saving of 72 paisa per unit for consumers.
In total, about 8,050 GWh of electricity was generated at an estimated fuel cost of Rs50.1 billion, while electricity supplied to Discos cost around Rs48 billion, paving the way for the proposed refund.
Hydropower emerged as the largest contributor to the national grid with a 39 percent share, up from 27.4 percent in October. Nuclear energy followed with a 25 percent share, compared to 22 percent a month earlier. Local coal accounted for 9.34 percent, while the share of RLNG-based generation dropped sharply to 8.64 percent from 19.7 percent in October. Local gas contributed 8.4 percent, and imported coal 5 percent.
RLNG remained the most expensive fuel source, costing Rs21.58 per unit, followed by local coal at Rs17.77 per unit and local gas at Rs14.33 per unit. Imported coal cost Rs14.14 per unit, while no electricity was generated from furnace oil or high-speed diesel during the month.
Nuclear power proved to be among the cheapest sources at Rs2.27 per unit. Renewable sources—wind, bagasse and solar—together contributed 3.7 percent to the grid. Wind and solar had zero fuel cost, while bagasse-based generation, with a 0.94 percent share, cost Rs10.84 per unit. Electricity imports from Iran made up 0.43 percent of the total supply at a cost of Rs22.57 per unit.
