By Muhammad Mudassar ISLAMABAD, April 22 (INP-WealthPK): Power generation in March 2022 reached 10,418GWh (14,003MW) compared to 8,965GWh (12,049MW) in the corresponding period of March 2021, showing an increase of 16.2 percent, reports WealthPK. A mix of furnace oil (FO) with liquefied natural gas (RLNG) and nuclear power resulted in a higher power generation rate. The core contributors to power generation during March 2022 were coal 25 percent, RLNG 19 percent, hydel 16 percent, nuclear 15 percent, furnace oil 11 percent, gas 10 percent, wind 3 percent, bagasse 1 percent, and solar 1 percent. Electricity generation from coal dropped by 6.3 percent in March 2022 which was 3500.8MW compared to 3735.2MW in March 2021. The major reason for this reduction is that the coal-based cost of generation shot up by 71 percent YoY to Rs12.41/KWh during March 2022 from Rs7.3 in March 2021. The core reason is due to a 338 percent rise in coal prices in the international market. From RLNG, electricity generation increased by 1.8 percent in March 2022, reaching 2576.6MW as against 2530.3MW in March 2021. The RLNG-based electricity generation cost also increased by 58 percent YoY to Rs14.37/KWh in March 2022 from Rs9.1 in March 2021. The reason is due to a 90 percent YoY rise in RLNG prices to Rs2,846/MMBtu (USD 15.81/MMBtu). In Pakistan, furnace oil is the most expensive source of electricity generation. The cost of electricity generation [from furnace oil] was Rs11.9 per kilowatt-hour in March 2021, which surged to Rs22.5 in March 2022. The major reason is the Russia-Ukraine conflict. Russia is one of the largest exporters of oil products. On the other hand, the Economic Coordination Committee (ECC) of the newly formed federal cabinet on the 19th April approved Rs69 billion for immediate reimbursement of price differential claims (PDCs) to the oil industry on account of cheaper sales of petroleum products than the cost of purchase. The cost of electricity generation from bagasse and nuclear did not change in March 2021 and March 2022. The cost of power generation from bagasse and nuclear was Rs6/KWh and Rs1/KWh respectively. Overall, the cost of electricity generation YoY increased by 66 per cent during March 2022 as compared to March 2021. The major reason is the rise in fuel prices in the international market. Given the current situation, the Central Power Purchasing Agency (CPPA) warned the National Electric Power Regulatory Authority (NEPRA) on 19 April that an increase of Rs3.15 per unit was imminent. However, the NEPRA is yet to take any decision about increase in the price of electricity. According to CPPA, the country produced 10 billion units of power in March 2022 at a cost of Rs94 billion. During the first nine months (July-March) of the current FY2021-22, power generation increased by 10.1 percent year-on-year to 101,699GWh (15,465MW) as against 92,371GWh (14,047MW) generated in the same months last year 2020-21.