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Nepra agrees to allow Discos Rs1.38/unit hike

  • The cumulative financial impact of Rs 1.37 per unit has been calculated at Rs 21 billion
Published September 2, 2021
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ISLAMABAD: National Electric Power Regulatory Authority (Nepra) in a hearing has agreed in principle to allow an increase of Rs 1.38 per unit in Discos’ tariffs for July 2021 under monthly fuel price adjustment mechanism.

The hearing was presided over by Chairman Nepra Tauseef. H. Farooqi and members, whereas the representatives of Central Power Purchasing Agency -Guaranteed (CPPA-G) were also present. The cumulative financial impact of Rs 1.37 per unit has been calculated at Rs 21 billion.

The impact of increase will not be passed on to the lifeline consumers, agriculture consumers and K-Electric (KE).

CPPA-G had sought an increase of Rs 1.47 per unit on the basis of its data. Nepra also sought previous adjustment of Rs 1.5 billion, financial impact of which was Paisa 10 per unit.

During the hearing, the Nepra chairman asserted that concrete steps have not been taken to sort out the concerns of the regulator.

“A lot is being said but nothing specific has been done,” he said adding that CPPA-G has sought adjustment for closed power plants, which Nepra will not allow.

The financial impact of deviation from economic merit order has been recorded at Rs 689 million of which financial impact due to RLNG was Rs 471 million, system constraints of Rs 148 million and underutilization of efficient power plants Rs 70 million. Nepra stated that it would not allow cost of Rs 102 million, as it is unjustified.

Nepra allows KE to hike tariff

The additional financial impact of Rs 9.6 billion was recorded due to non-availability of RLNG in July 2021.

Farooqi directed National Power Control Centre (NPCC) to provide summary regarding demand of RLNG from January to August 2021, including monthly shortfall of RLNG.

Chairman Nepra, in his comments, said that the cumulative cost for removal of system constraints will be far less than expenditure being incurred in the name of losses.

He asserted that in future there will be no load shedding in July or August in the name of repair of system. Nepra has already written a letter to the companies.

Farooqi maintained that Nepra has adopted a zero tolerance policy in life threatening accidents in Discos.

He further contended that fluctuation in voltage is an excusable offence but not the loss of life of a human being.

As per the data submitted to Nepra, in July 2021, hydel generation recorded at 4,694.67 GWh which constituted 29.94 per cent of total generation in the entire month. Power generation from coal-fired power plants was 2,383.33 GWh (15.20 per cent of total generation) at a rate of Rs 8.4101 per unit, whereas generation from HSD was recorded at 123.5 GWh (0.79 per cent) at Rs 19.3422 per unit. Generation from RFO was 1,612.34 GWh (10.28 per cent of total generation) at Rs 17.0783 per unit.

Electricity generation from gas-based power plants was 1,361 .17 GWh( 10.28 per cent) at Rs 8.1720 per unit, RLNG- 3,137.68 GWh (20.10 per cent of total generation) at Rs 12.0604 per unit, nuclear 1,659 GWh at Rs 1.000 per unit (10.59 per cent of total generation), and electricity imported from Iran was 40.09 GWh at Rs 11.6663 per unit.

Industrial consumer categories: KE to charge Rs12.96/unit rate

Power generation from different sources (mixed) was 9.88 GWh at a price of Rs 4.4846 per unit, generation from bagasse recorded at 45.02 GWh at Rs 5.9822 per unit.

The energy generated from wind was recorded at 550.37 GWh, 3.51 per cent of total generation and solar at 61.82 GWh - 0.39 per cent of total generation in July 2021.

The total energy generated recorded at 15,679.72 GWh, at a basket price of Rs6.4653 per unit. The total cost of energy was Rs 101.375 billion. CPPA-G also sought previous adjustment/ supplemental charges of Rs 1.753 billion against negative use of power of 7.48 GWh. The sale to IPPs was also reduced by 14.82 GWh, the price of which was Rs 423 million while the reduction in transmission losses was recorded at 445.63 GWh.

According to the CCPA-G data, net electricity delivered to Discos in July 2021 was 15,219.27 GWh at a rate of Rs 6.7485 per unit, total price of which was Rs 102.707 billion.

CPPA-G in its tariff petition maintains that the reference fuel charges for July 2021 were estimated at Rs 5.2798 per unit whereas the actual fuel charges were Rs 6.7485 per unit; hence, an increase of Rs 1.4687 per unit has been sought for July 2021.

Copyright Business Recorder, 2021

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