The National Electric Power Regulatory Authority (NEPRA) will scrutinize the Central Power Purchasing Agency (CPPA) request to increase electricity rates by Rs. 4.66 per unit under the fuel price adjustment mechanism.
CPPA has submitted a petition for the fuel price adjustment for the month of November, citing an increase in the cost of electricity generation. According to NEPRA, the agency’s request pertains to the adjustment of fuel prices for November, necessitated by changes in the fuel mix used for power generation during that period.
The petition outlines that in November, 7.28 billion units of electricity were sold, and the fuel mix included 36.50% electricity generated from water, 13% from local coal, and 6.44% from imported coal.
The document further reveals that 9.21% of electricity was produced from local gas, 10.57% from imported liquefied natural gas (LNG), and 20.83% from nuclear sources in November. The request details the diverse sources contributing to the power generation mix during the month.
According to the CPPA’s petition, the estimated cost per unit of electricity in November was Rs. 9.44. However, the actual fuel cost in November was Rs. 4.78 per unit, making a significant adjustment necessary to account for the variance.
The fuel price adjustment mechanism is crucial for maintaining transparency and balancing the cost of electricity generation in accordance with fluctuating fuel prices. NEPRA’s review of the CPPA’s request ensures that any adjustments made are justified and reflective of the actual costs incurred in the power generation proc
NEPRA’s examination of the fuel price adjustment request by CPPA for November signifies a regulatory effort to maintain fairness and accuracy in electricity pricing, considering the dynamic nature of fuel costs in the power generation landscape.
