ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has increased power tariffs of Distribution Companies (Discos) by Rs 1.38 per unit for July 2021 under monthly fuel price adjustment mechanism.
The Authority conducted public hearing on September 1, 2021, on a request of Central Power Purchasing Agency -Guaranteed (CPPA-G), which sought an increase of Rs 1.4685 per unit for July under FCA.
However, Nepra has approved an increase of Rs 1.3771 per unit, the financial impact of which will be Rs 21 billion which will be about Rs 25 billion after GST is included in the bills. The increase will be charged in the billing of September 2021 to all categories of consumers except lifeline consumers and KE consumers.
Vice Chairman Nepra/ Member Tariff, Rafique Ahmad Shaikh, in his separate note accused both the National Power Control Centre (NPCC) and CPPA-G for not complying with the directions of regulator.
“System operator and CPPA-G, both have once again failed to comply with directions of regulator regarding provision of financial impact against violation of Economic Merit Order (EMO) in power plant operations,” he said.
Shaikh further stated that financial burden for non-availability of RLNG shall not be passed on to the consumers. He maintained that all energy generated shall be taken into account by CPPA-G while submitting the monthly FCA. Nepra team repeated that energy from some plants has not been taken into account.
The Authority also observed that CPPA-G has purchased energy of 40.093 GWh from Tavanir, Iran in July 2021 at a cost of Rs 468 million. Since the Authority has returned the request of CPPA-G for extension in the contract between CPPA-G and Tavanir, Iran for supply of 104 MW being not filed in accordance with the import of Power Regulations 2017, therefore, the cost of electricity purchased from Tavanir, Iran is being allowed strictly on provisional basis, subject to its adjustment once the Authority approves the extension in the contract between NTDC/CPPA-G and Tavanir, Iran.
Copyright Business Recorder, 2021