DISCOs to earn Rs.155 billion from fuel adjustment

• K-Electric and ex-WAPDA distribution companies want fuel cost adjustment for June 2022 to generate Rs. 155 billion.
• NEPRA will hear both applications on July 28, 2022.
• K-Electric’s high FCA was caused by 50% more expensive LNG and 74% more CPPA power.

K-Electric (KE) and ex-WAPDA distribution companies (Discos) want a fuel cost adjustment for June 2022 to generate Rs. 155 billion.

According to a plea by the Central Power Purchasing Agency (CPPA) on behalf of ex-WAPDA distribution companies (XWDISCOs), the June FCA is Rs. 9.90 per unit. These modifications will produce Rs. 133 billion in August.

The additional FCA is 166% greater than the June reference fuel cost, illustrating a large disparity between real and predicted fuel costs.

K-Electric asked for Rs. 11.4 per unit higher FCA for June, which will yield Rs. 22.25 billion in August. NEPRA will hear both applications on July 28, 2022.

CPPA said users were only paying Rs. 5.93 per unit for fuel. Fuel cost Rs. 15.84 per unit. Fuel prices were adjusted by Rs. 9.9 per unit.

KE’s high FCA was caused by 50% more expensive LNG and 74% more CPPA power.

Due to declining nuclear production, Pakistan imports pricey RLNG to meet electricity needs. Hydropower generation has also been reduced due to the technical failure of the Neelum Jhelum Hydroelectric Project (NJHEP).

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