Power bills are predicted to rise by an additional Rs 4.66 per unit next month

The November 2023 fuel adjustment is the reason for the proposed price increase.

ISLAMABAD: In the event that the National Electric Power Regulatory Authority (NEPRA) approves the proposed increase in power prices of Rs4.66 per unit in January 2024 bills, electricity consumers are expected to incur an additional cost of Rs33 billion.

The November 2023 fuel adjustment is the reason for the proposed price increase.

The NEPRA held a public hearing on the Central Power Purchasing Agency’s (CPPA) appeal. In this case, Discos was represented by the CPPA.

When more economically viable plants were being shut down for maintenance, NEPRA questioned the CPPA about running power plants on imported fuel. Notably, the coal-fired Thar plant’s maintenance-related shutdown raised the cost of electricity.

Additionally, in November 2023, the use of power plants powered by expensive imported LNG fuel and a 13% drop in electricity consumption increased the cost burden on consumers.

Negative growth in power generation drives up costs when demand drops below the reference level, according to the NEPRA chairman. As a result, quarterly adjustments (QTAs) and monthly fuel charges (FCAs) are positively adjusted.

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Capacity charges increase as a result of low capacity utilization because customers must always pay fixed charges. The CPPA had asked in its petition for the previous adjustments, totaling Rs15.9 billion (Rs2.117/unit), to be transferred to customers’ January 2024 bills.

In response to claims of overbilling, NEPRA defended its history of carrying out rulings and promised to uphold its most recent ruling. Power distribution companies (Discos) received explanations from the regulator, along with notice that legal action would be taken against them.

The CPPA said, “Discos manage loads due to losses, hydel generation has decreased, expensive generation is occurring, and gas supply is unavailable to power plants, leading to load management,” in response to a question regarding recent loadshedding. Additionally, we apply 2-hour load management in compliance with government regulations.

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In the meantime, the power division blamed numerous grid station failures in the Multan region as well as other Discos for the recent load shedding that occurred on December 25 and 26 in a separate statement. System limitations were brought about by the tripping of the 132kv, 220kv, and 500kv grid stations as well as a decrease in hydel generation because of the fog. One source of the 1,600 MW generation shortfall was the closure of the canal, while the limited availability of LNG was the reason for the 700 MW shortfall.

In an effort to minimize shortages, the Power Division is producing 800 MW of power using furnace oil to make up for the lack of LNG. In order to control system limitations, load shedding was required, and ongoing efforts are being made to stabilize the system.