Electricity price increased by Rs2 per unit

News Desk , Bol News

15:03:15, Monday, September 03, 2018

National Electric Power Regulatory Authority (Nepra) has notified increase in Discos tariff by 35.25 paisa per unit for July 2018 under monthly fuel price adjustment mechanism.

The Authority conducted a public hearing in the matter on August 29, 2018 and went through the information provided by CPPA-G seeking monthly fuel adjustment and due diligence accordingly. From perusal of the information so provided by CPPA-G, the actual pool fuel cost for July 2018 was Rs.5.6072/kWh, against the reference fuel cost component of Rs 4.9811/kWh as indicated in the determination pertaining to the Discos for FY 2015-16. The actual fuel charges, as reported by CPPA-G, for the month of July 2018 increased by Rs 0.6261/kWh as compared to the reference fuel charges.

As per data submitted by CPPA-G, Discos purchased 58.023 GWh from small and captive power plants during July 2018. CPPA-G claimed Rs. 398.31 million fuel cost which was slightly higher than the NEPRA working of Rs. 398.18 million.

Accordingly, for the purpose of instant adjustment of July 2018, cost of Rs.398.18 million has been considered. Further, fuel costs of NPGCL and Nandipur for July has been adjusted as per the Authority''s approved rates. Similarly, Fuel cost of Balloki (NPPMC) claimed by CPPAG on HSD has been adjusted as per the Authority''s approved FCC on RLNG, as no HSD FCC has been approved by the Authority for the relevant period. CPPA-G has included cost of Rs.2.522 billion for QATPL owing to difference in the actual rates approved by the Authority and the rates claimed by CPPA-G from March 2017 till June 2018. Although CPPA-G provided its working and invoices in this regard, however, based on the information initially submitted by CPPA-G, an amount of Rs.237 million could be verified. Accordingly, the amount of Rs.237 million has been included in the FCA of July 2018. The invoices/detail provided by CPPA-G after hearing, are in the process of verification and once verified, the same shall be allowed in the subsequent monthly FCA.

CPPA-G also claimed previous adjustment of Rs 587 million on account of JPCL (GENCOI) regarding approval of FCC of JPCL on RLNG by the Authority for the months of May and June 2018. The Authority observed that the adjustment claimed by CPPA-G regarding JPCL includes certain costs which were previously claimed by CPPA-G in its monthly data of May and June 2018 and were allowed by the Authority. However, CPPA-G subsequently requested to disallow these costs. Now again in the FCA of July 2018, CPPA-G has requested to allow these costs. CPPA-G, further, has also included previous adjustments on account of partial load adjustment in the claimed amount.

The Authority argued that the issue requires further verification of the amount, therefore, for the FCA of July 2018, the amount claimed by CPPA-G has not been considered. CPPA-G further claimed Rs 297 million on account of previous adjustment for Nandipur Power Plant. However, as per the details provided by CPPA-G, an amount to the extent of Rs.222 million has been verified and included in the FCA of July 2018. CPPA-G also claimed Rs.243 million on account of previous adjustment for Sahiwal Coal, however, no details in terms of the nature and the period to which this adjustment pertains has been provided. Accordingly, the amount has not been included in the FCA of July 2018. CPPA-G reported NTDC transmission losses of 343.12 GWh i.e. 2.50 percent during July 2018 on overall generation of 13,751 GWh including energy generated and delivered at 132kV level directly to Discos. However, NTDCL, through its metering data, reported T&T losses of 338.34 GWh i.e. 2.89% during July 2018 based on energy of 11,698 GWh transmitted through NTDCL network at 500kV and 220kV level.

As per the determination of NTDCL, for the FY 2015-16 & FY 2016-17 issued on April 11, 2017, notified on July 27, 2018 vide SRO No. 721 (1)/2018, the Authority has determined annual losses target of 2.80% for NTDCL for its 500 KV and 220 KV network only. The losses reported by NTDCL for July 2018 are 2.89% based on the energy delivered through NTDCL system, which are higher than the allowed threshold of 2.80 percent. Accordingly, for working out the FCA for July 2018, losses to the extent 2.80 percent has been considered.

The Authority also in its previous FCA decisions had been directing CPPA-G to provide monthly FCA data on a specified format in addition to the format on which CPPA-G is currently submitting its FCA requests. However, the data has not been provided. The Authority took serious notice of this non-compliance by CPPA-G and again directed CPPA-G to submit the monthly FCA data on a specified format in addition to the format on which CPPA-G is currently submitting its FCA requests.

The Authority, after incorporating the aforementioned adjustments, has reviewed and assessed an increase of Rs.0.3525/kWh in the applicable tariff for former Wapda Discos on account of variations in the fuel charges for the month of July 2018.

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