National Electric Power Regulatory Authority (Nepra) has provisionally approved distribution companies (Discos) to recover Rs32.7 billion at Rs3.53 per unit from consumers for October 2023.

Central power purchasing agency highlighted a negative impact of paisa 20 per unit for the Fuel Cost Adjustment (FCA), which rose to Rs3.53 per unit with Rs28.33 billion added in previous adjustments.

China Power and Thar Coal Block-1 Power also had shares in the adjustments.

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Due to a potential negative impact on consumers, there’s a proposal to stagger the amount in the winter months. Electricity sales decreased by over 10 per cent, reaching 9.63 billion units in October 2023, and a 28 per cent reduction in demand occurred compared to September 2023.

Concerns were raised about the decline in demand, with Nepra noting alarm if it’s due to reduced industrial consumption.

In a public hearing, the National Transmission and Despatch Company (NTDC) representative urged a review of the “disallowed mechanism” due to financial difficulties, with Rs42 billion withheld, impacting salaries and pensions.

In terms of electricity generation, various sources contributed differently in October 2023. Hydel generation was 32.54 per cent, local coal-fired plants were 13.94 per cent, and imported coal was 3.51 per cent.

Gas-based plants generated 7.35 per cent, RLNG contributed 20.25 per cent, nuclear sources provided 19.08 per cent, and electricity imported from Iran constituted 0.24 per cent.

Wind and solar energy made up 3.08 per cent and 0.79 per cent, respectively. The total energy generated was 9,572 GWh at Rs8.2605 per unit, with a cost of Rs79.066 billion.

Discos received 9,253 GWh at Rs11.4277 per unit, totaling Rs105.737 billion in October 2023. The situation raises concerns about the financial viability of power entities and their potential impact on consumers.