Consumers to Face a massive increase in Electricity bills in August 2022

NEPRA has approved an increase of Rs. 9.90 per unit for the monthly fuel charge adjustment for power distribution companies (Discos). This will result in an increase of Rs 9.90 per unit in electricity bills in August 2022.

Nepra said that CPPA-G had requested an increase of Rs 9.9 per unit in a statement.
The Authority held a public hearing on July 28, 2022.

Earlier in May, FCA power companies charged Rs 7.91 per unit because of a monthly fuel adjustment in May.

Electricity bills in August 2022 are higher by Rs 1.99 per unit than in May

The companies will charge Rs 1.99 per unit more from the consumers in electricity bills in August 2022 than in May, Nepra said, adding that the increase will be applicable only on bills for August.
It will apply to all DISCOS customers except Lifeline customers. It will not apply to K electric consumers.

NPCC/NTDC, during the hearing, explained the operation of power plants on RFO.

Up to Rs 11.10 increase okayed in KE electricity bill August 2022

However, the Authority observed that an in-house analysis has also been carried out to work out the financial impact due to deviation from EMO based on the information submitted by NPCC.

As per the in-house analysis/workings carried out, the net amount deductible, on a provisional basis, from the overall claim due to deviation from EMO is Rs. 84.9 million.

Its break-up was Rs. 73.86 million in financial impact due to system constraints and Rs. 11.04 million due to underutilization of efficient power plants.

Further, the Authority has noted that certain RLNG power plants were dispatched out of merit to avoid line pack issues in the network of SNGPL.

They discussed the issue of the line pack during the hearing, and NPCC was directed to provide the relevant information on the matter.

Based on the information submitted by NPCC, the Authority noted that the issue involves the Ministry of Energy’s Policy. Therefore, the matter requires further deliberation.

However, for the FCA of June 2022, the Authority has decided to withhold the financial impact of out-of-merit generation due to a line pack issue of Rs. 26,31 million.

It directed CPPA-G/ NPCC to provide complete information regarding the issue.

The power regulator has decided to deduct the amounts above provisionally in the instant FCA until NIPCC/ NTDC and CPPA-G provide the required details along with complete justification in this regard to the satisfaction of the Authority.

It is also pertinent to mention that during the hearing of FCA for April 2022, CPPA-G and NPCC agreed to revise the EMO list posted on their website.

It revised the list to exclude the RFO, Gas, and RLNG power plants not supplying energy to CPPA-G due to a lack of availability of fuel.

Nepra directed CPPA-G/NPCC again to ensure compliance.

Further, the regulator also observed that Energy from Attock Gen and Punjab thermal power plant was reported to be more than Joint Meter readings by 59,126 kWh and 7,000 kWh, respectively.

Accordingly, the excess energy and financial impact have been adjusted while working out the monthly FCA of XWDISCOs for June 2022.

In its notification, Nepra has okayed an increase in power tariff by Rs 9.90 per unit that will reflect in electricity bills in August 2022.