Business

Discos seek Nepra approval for Rs1.829 per unit increase

Published

1 year ago

Farwa

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ISLAMABAD: Former Water and Power Development Authority (Wapda) distribution companies (XWDiscos) have sought the National Electric Power Regulatory Authority’s (Nepra) approval for the collection of an additional charge of Rs1.829 per unit from consumers in October, The News reported Wednesday.

The Central Power Purchasing Agency (CPPA), acting on behalf of XWDiscos, has filed a petition seeking the aforementioned tariff hike for the August 2023 FCA.

Nepra has set a public hearing for September 23 to review this petition. If the proposed increase is sanctioned, it could result in a total financial impact of over Rs25 billion on the consumers.

The petition outlines that in August, the consumers were charged a reference fuel cost of Rs6.6457 per unit, while the actual fuel cost incurred was Rs8.4747 per unit.

The CPPA argues that the additional cost of Rs1.829 per unit should be transferred to the consumers.

According to the data furnished with the regulatory authority, the CPPA’s report indicates that a total of 15,959 gigawatt-hours (GWh) of electricity was generated in August 2023, with an associated cost of Rs131.91 billion (equivalent to Rs8.2654 per unit).

Moreover, 15,472GWh, priced at Rs131.118 billion (or Rs8.4746 per unit), was delivered to distribution companies (Discos), while transmission losses stood at 2.87%.

It is noteworthy that there was a 13.57% increase in power generation in August 2023 compared to the same month of the previous year’s generation of 14,052.6 GWh. In comparison to July, generation rose by 7.5%.

The cost of generation in August decreased by 15.75%, averaging at Rs8.4746 per unit, compared to August 2022’s cost of Rs10.0587 per unit; however, it marked a 1.63% increase from the previous month’s cost of Rs8.3387 per unit.

The year-on-year decrease in generation cost primarily stemmed from the decrease in coal, furnace, and regassified liquefied natural gas (RLNG) prices. The generation cost from coal fell by over 50%, furnace 6.4%, and RLNG-based generation cost reduced by 4.13%.

Additionally, the increase in low-cost renewable energy generation played a significant role. Hydropower generation increased by 12.2%, nuclear by 8.86%, solar by 14.4%, and 106% as compared to the generation from these sources in August 2022.

Hydropower accounted for the largest share of 37.6% in total power generation in August 2023, reaching 6,006 GWh. This represented an increase of 8.8% over the previous month’s generation of 5,518 GWh.

RLNG-based electricity generated 2,741GWh, costing Rs23.715 per unit, compared to 2,918GWh in July at Rs24.43 per unit. In August 2022, RLNG generation totaled 1,755.8 GWh, costing Rs24.72 per unit.

The nuclear power plants generated 2,040GWh electricity in August 2023, with per unit cost of Rs1.1725. In July 2023, generation stood at 2,107GWh with Rs1.664/unit and in August 2022, it was 1,873.98 GWh costing Rs1.019/unit.

Over the previous month nuclear power generation declined by 3.18%, while it increased by 8.86% over August 2022.

Coal-based generation (local and imported) witnessed a growth of 8.77%, reaching 2,357GWh in August 2023, up from 2,163GWh in August 2022. Over the previous month’s (July) generation of 2,180GWh, this month’s generation declined by 8.12%.

In August 2023, generation from the local coal was 1,638GWh (costing Rs7.01/unit) and imported coal generation stood at 719 GWh (cost Rs20.14/unit).

The cost of coal-based electricity (from both imported and local coal) in August 2023 was 13.57 per unit, compared to Rs11.54 per unit in July 2023 and Rs20.54 per unit in August 2022.

Natural gas-based generation contributed 1,214GWh of electricity to the national grid in August, with a cost of Rs13.22 per unit.

In July 2023, generation was 1,129 GWh (at a cost of Rs13.68 per unit), while August 2022 saw 1,315GWh generated at a cost of Rs10.49 per unit.

During August, no electricity was generated from the high-speed diesel. However, 649 GWh of electricity generated from furnace oil came at a rate of Rs33.32 per unit.

In the previous month of July, 295GWh electricity was generated at Rs28.73/unit. In August 2022, the generation stood at 1021.4GWh (costing Rs35.6/unit).

The import of electricity from Iran amounted to 26GWh in August 2023, with a cost of Rs25.1 per unit against the previous month’s 29GWh at Rs23.616/unit and 54.47 GWh in August 2022 at Rs20.96/unit.

Additionally, 38GWh electricity was generated from bagasse at a rate of Rs5.982 per unit. Wind and solar sources contributed 805 GWh and 84 GWh respectively, to the national grid during the month.

Business

Report: Solar is expected to set new records this year.

Published

14 hours ago

Farwa

In 2023, there was an expected 87% increase in growth. This year’s increase is 29% over the previous one, according to the research.

The cheapest source of electricity globally is solar power, and as such, it is expanding quicker than many anticipated, according to Euan Graham, an Ember electricity data analyst.

Ember estimates demonstrate the rapid growth of solar energy: in 2024 alone, new solar capacity will surpass the 540 GW of additional coal power added globally since 2010.

Expected to add 334 GW, or 56 percent of the global total in 2024, China continues to lead the globe in this industry.

According to the survey, it is followed by the US, India, Germany, and Brazil. These five nations will account for 75% of the new solar capacity in 2024.

According to the research, maintaining the sector’s growth required grid capacity and battery storage.

“Providing enough grid capacity and developing battery storage is critical for handling electricity distribution and supporting solar outside of peak sunlight hours as solar becomes more inexpensive and accessible,” the statement stated.

“Solar power might continue to surpass forecasts for the remainder of the decade if these issues are resolved and development is sustained.”

Business

The PSX has resumed operations, achieving a gain of 970 points.

Published

1 day ago

Farwa

The optimistic close at the PSX was propelled by rumors preceding the International Monetary Fund (IMF) executive board meeting on September 25, at which the approval of a $7 billion Extended Fund Facility (EFF) is expected, stated Ahsan Mehanti of Arif Habib Commodities.

Strong economic indicators, such as increasing remittances, escalating exports, and a declining trade deficit, further bolstered investor confidence. Furthermore, the Asian Development Bank’s (ADB) commitment to a $2 billion yearly concessional loan until 2027, along with a robust rupee, significantly contributed to the market’s favorable performance, he stated.

Widespread purchasing at the PSX was noted among blue-chip stocks, with major players like Mari Petroleum (MARI), Engro Fertilizers (EFERT), United Bank Limited (UBL), Meezan Bank Limited (MEBL), and Fauji Fertilizer Company (FFC) recording substantial increases. According to Topline Securities, these stocks collectively resulted in a significant 682-point increase in the index.

Pioneer Cement Limited (PIOC) announced its fiscal year 2024 results, revealing a profits per share (EPS) of Rs 22.79 and a cash dividend of Rs 10 per share. This announcement contributed to the favorable sentiment in the market.

Trading volume surpassed 400.2 million shares, resulting in a total turnover of Rs15.9 billion. Worldcall Telecom Limited (WTL) topped the volume chart, transacting more than 32.2 million shares.

The Large Scale Manufacturing Index (LSMI) demonstrated a year-on-year (YoY) gain of 2.4% in July 2024. This expansion was propelled by multiple critical areas.

Tobacco experienced a significant increase of 90.2%, establishing it as the foremost contributor to the LSMI growth. Conversely, the automotive sector witnessed a substantial increase of 72.0%, indicating robust demand and output.

The transport equipment category experienced an 11.7% increase, signifying robust growth in the manufacturing of transport-related machinery and equipment. The other manufacturing sector experienced a gain of 10.7%, positively impacting the overall LSMI.

Nevertheless, not all industries exhibited strong performance. The leading decliner was the fabricated metal sector, which experienced an 18.4% decrease, signifying a contraction in metal product manufacturing. The electrical equipment industry experienced a substantial decline of 19.4%, indicative of reduced output levels.

In July 2024, the LSMI decreased by 2.1% on a month-on-month (MoM) basis. This fall signifies a minor contraction in manufacturing operations relative to the preceding month, although the favorable year-on-year growth.

Business

As of August 2024, Pakistan’s current account is in surplus.

Published

1 day ago

Farwa

Pakistan’s current account deficit was $161 million as of August 2023, according to figures from the central bank.

The current account deficit for the months of July and August of this year was $171 million, compared to $939 million for the same time in the previous fiscal year.

According to experts, the 40% rise in remittances is the primary cause of the current account surplus.

August saw US$ 2.9 billion in offshore remittances to Pakistan, according to experts.

Comparing July of this year to July of last year, total exports increased by 11.3% YoY to $3.01 billion. In contrast to the $3.08 billion in exports the month before, it decreased by 2.2%.

Compared to the $4.99 billion in imports recorded in July of previous year, total imports increased 12.2% YoY to $5.6 billion. Imports decreased by 1.3% over the previous month.