ISLAMABAD – National Electric Power Regulatory Authority has shown concern over 20.18 percent decline in electricity sale, which will further increase the capacity payments to IPPs and will put additional burden on the consumers on account of Quarterly Tariff Adjustments.
During the public hearing organised by NEPRA on the CPPA-G petition on account of monthly fuel charges adjustments for the month of August, the regulator was informed that during the last seven months, solar panels with the cumulative capacity of 13000MW were imported. The hearing was presided over by Chairman NEPRA, Waseem Mukhtar.
In a petition submitted to NEPRA, on the behalf Ex-Wapda Discos (XWDiscos), the CPPA- G said that for the month of August the reference fuel charges from the consumers were Rs9.3877 per unit, while the total cost per unit was Rs8.8122 per unit. The CPPA-G has requested that it should be allowed to return the overcharged Re0.5755 per unit to the consumers. If approved by the National Electric Power Regulatory Authority (NEPRA), DISCOs will refund Re0.5755 per unit to power consumers on account of fuel charges adjustment for August 2024. Total electricity generation in August 2023 was recorded at 15,959 gigawatt-hours (GWh), while in August 2024, it declined to 13,179 GWh.
The hearing was informed by the CPPA-G that the demand was decreased by 20.18 per cent from reference projections of August 2024, while there was drop of 17.42 per cent in electricity demand in the month on YoY basis. The maximum demand during August was 13200 MW, while the minimum was 11981 MW. National area-weighted rainfall of August 2024 was excessively above average (+147%) and stands second wettest August during past 64 years, the official maintained. The daytime (maximum) temperature at country-level stands 5th lowest mean maximum temperature during past 64 years, the official added.
Member NEPRA, Matthar Niaz Rana said that the demand of industry and agricultural sector has decreased in all the Discos. There was a decline of up to 27 percent in electricity demand in industrial sector, he said. Increase in price of electricity is also one of the reasons for the decrease in demand, said Member Nepra Muthar Niaz Rana Chairman NEPRA said that the regulator is concerned about the decrease in electricity demand. Interestingly, despite the continuous decline in electricity demand, the Power Division, CPPA-G and Discos are clueless regarding the reasons for the decrease. The officials are blaming change in the weather pattern, rains, solar and high tariff for the decline, however, they have no solid study to support their claims.
Member NEPRA Sindh, Rafiq Shaikh said that the industry is closing down and that’s why the demand is decreasing. “There is no study to find out the reasons for the reduction in electricity demand during the last five to six months,” Rafiq Sheikh maintained. “We don’t have any solid reason why the demand is decreasing,” Rafiq Sheikh said. If some sort relief is provided to the industry, the consumption of electricity may increase, Rafiq Sheikh said. Member NEPRA, Khyber Pakhtunkhwa, Maqsood Anwar said that the industry itself is saying that the units have to be closed due to the expensive electricity. Official of the CPPA-G said that the reduction in demand by industrial sector is alarming. When asked about the impact of lowering demand of electricity, official of the CPPA-G acknowledged that the lower the demand for electricity will result in higher the quarterly adjustments. Besides, reduction in demand will also increase capacity payment to the IPPs.
Rafiq Sheikh said that to meet the revenue demand of the Discos, the burden of low demand will be transferred to the common consumer. The Sahiwal Coal Power Plant is not being operated in its full capacity, due to transmission constraints, which has burdened the consumers for Rs 5.3 billion in June, Rs 4 billion in July and Rs 1.5 billion in August, Rafiq Shaikh said. He said the consumers are being burdened because of the failure of NTDC to remove transmission constraints. During last four years, NTDC has not done anything for the removal of transmission constraints, he added. NEPRA has reserved the judgment and will release it later after further analysis of the data.
Nepra expresses concern over 20.18 percent decline in electricity sale
Fawad Yousafzai
2024-09-27 01:15:28
www.nation.com.pk
https://www.nation.com.pk/27-Sep-2024/nepra-expresses-concern-over-20-18-percent-decline-in-electricity-sale