Hubco produced most expensive electricity in FY21/22

KARACHI: The Hub Power Company (Hubco) produced the most expensive electricity during FY21/22 at the rate of Rs44.14/kWh, as the furnace oil (FO)-based generation contributed 33 per cent to the total thermal generation during the period.

According to the Performance Evaluation Report issued by the National Electric Power Regulatory Authority (Nepra), the data submitted by the thermal power plants for the FY21/22 also reveals the net generation of most of the inefficient and expensive furnace oil-based power plants remained less.

“However, since the tariff structure of these plants is on ‘Take or Pay’ basis; therefore, the average per unit rate of these plants remained considerably higher,” the report added.

The average per unit rate of Saba Power, PakGen and Lalpir Power remained Rs44.14/kWh, Rs33.24/kWh, Rs31.12/kWh and Rs30.14/kWh, respectively, during the last fiscal year.

The share of the furnace oil, regasified liquefied natural gas (RLNG), coal and natural gas-based power plants in the total reference capacity of the system, excluding KE is 33 per cent, 27 per cent, 24 per cent and 16 per cent, respectively.

Moreover, the data submitted by the thermal power plants shows that most of the efficient and cheaper natural gas, RLNG and coal-based power plants remained in operation for most part of the year during FY21/22.

For e.g., Bhikki, Balloki, Haveli Bahadur Shah, Uch, Uch-II and Port Qasim remained in operation for more than 80 per cent of the total time during the period.

Whereas, most of the comparatively inefficient and expensive request for offer (RFO)-based power plants remained in operation for less part of the year during the FY21/22.

For e.g., TPS Muzaffargarh and TPS Jamshoro remained in operation for only 3 per cent and 7.5 per cent of the total time, respectively, during the period.