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NEPRA to hold public hearing on FCA refund on August 28, details of power generation and fuel charges released

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Islamabad: The National Electric Power Regulatory Authority (Nepra) will hold a public hearing on August 28 to review the application for monthly Fuel Charges Adjustment (FCA) refund submitted by the Central Power Purchasing Agency (CPPA). The purpose of the hearing is to examine whether the requested refund is in accordance with the economic merit order.

According to CPPA, the total electricity generation in the country in July was 14,123 gigawatt hours (GWh), with an average cost of Rs 7.781 per unit. Its total fuel expenditure is Rs 109.89 billion. After transmission losses, 13,666 GWh of electricity was supplied to the DISCOs at a cost of Rs 8.1848 per unit, which also includes recovery from consumers of the previous period.

The latest report also provides details of the sources of generation:

Hydropower was the largest contributor, accounting for 40.1 percent of the total generation (5,668 GWh)

RLNG-based generation 17.26 percent (2,438 GWh), costing Rs 22.03 per unit

Local coal 10.64 percent (1,503 GWh), costing Rs 11.347 per unit

Imported coal 1,140 GWh, costing Rs 14.498 per unit

Nuclear energy generated 1,405 GWh, costing just Rs 2.42 per unit

Local natural gas generation 1,093 GWh, costing Rs 13.379 per unit

The Ministry of Energy, after approval by the Economic Coordination Committee (ECC), directed NEPRA on August 19 to make the FCA policy uniform across the country.  Under this policy, the FCA rates and duration will be the same for all consumers, including all WAPDA discoms and K-Electric. The difference between FCA and notified rates in K-Electric bills will be met through subsidies or cross-subsidies.

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