ISLAMABAD: The inflation-weary masses are likely to face a significant increase in their electricity bills after ex-Wapda distribution companies (XWDiscos) have sought a staggering R7.13 per unit hike from the National Electric Power Regulatory Authority (Nepra) for March, The News reported on Wednesday.
The request for Nepra approval comes amid a significant decrease in hydropower production and systemic constraints such as the inability of the high voltage direct current (HVDC) transmission line to effectively move economically viable power from southern producers to the north, resulting in a significant financial burden on customers.
As a result, the south has used fewer cost-effective energy sources, instead relying on more expensive alternatives such as high-speed diesel and residual fuel oil.
Increased gasoline costs are one aspect leading to these high prices.
Meanwhile, Nepra has scheduled a public hearing for February 23 to review the Central Power Purchasing Agency’s (CPPA) petition, which was presented on behalf of Discos.
Notably, out of total demand, these companies claimed a Rs2.568 billion recovery from earlier adjustments.
The petition claims that 8,314 gigawatt-hours (GWh) of power were generated in January 2024 at a cost of Rs114.634 billion (equal to Rs13.7885 per unit). Furthermore, 7,938 GWh, originally valued at Rs116.06 billion, were transferred to distribution companies (Discos), with transmission losses accounting for 4.24% (or 352 GWh) of total generation.
Last month (Dec 2023), it was 3.51 percent (271GWh), and in January 2023, it was likewise 3.51% (298GWh).
Power generation in January 2024 fell by 2.4% compared to the same month the previous year, when 8,515 GWh were generated.
However, by December 2023, the generation had grown by 7.6%. Interestingly, real power generation for the month was 4.7% lower than the reference generation. This drop in generation is expected to result in higher capacity charges during the third quarter of the fiscal year 2024 QTA (Quarterly Tariff Adjustment).
