Markets.Energy: Discos' consumers: Nepra appears confused about 20 paisa/unit refund under QTA

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) Thursday appeared confused about making its mind to approve refund of paisa 20 per unit to consumers of power Distribution Companies (Discos) under Quarterly Tariff Adjustment (QTA) of 4th quarter of FY 2020-21, determined for a variety of reasons.

This was the crux of a hearing officiated by Nepra Chairman Tauseef H. Farooqi, and attended by Vice Chairman, Rafique Ahmad Shaikh, Member Balochistan, Rehmatullah Baloch and Member KP, Maqsood Anwar Khan.

According to the data submitted by CPPA-G on behalf of Discos, a negative adjustment of Rs 20.349 billion was sought for the 4th quarter of 2020-21, of which the amount of Capacity Purchase Price (CPP) was Rs 6.121 billion, variable O&M 14.896 billion, Use of System Charges (UoSC) Rs 1.622, impact of T&D losses on monthly FCA Rs 965 million and supplementary CPP invoices of Rs 11 million.

The Chief Executive Officers of Iesco, Fesco and Sepco were quizzed on higher and lower capacity charges and Use of System charges respectively.

During the hearing Naveed of CPPA-G, stated that the main reason for the negative QTA for 4th non-payment of Rs 23 billion to Water and Power Development Authority (Wapda) due to suspension of tariff of Neelum Jhelum Hydropower project and reference rate of dollar at Rs 168, was actually Rs 153.

He requested the Authority to allow adjustment of FCA of Rs 10 billion of June last year in the determination of QTA, as it would result in less impact of FCA in the months to come, the FCA for coming months will be not less than Rs 2 per unit due to higher prices of RLNG and furnace oil.

Nepra's team informed that the data of pending FCA has not yet been verified with the CPPA-G. However, the representative of CPPA-G embarrassed Nepra's team that the data of QTA has also not been verified.

The Authority appeared embarrassed and both Chairman and Vice Chairman, enquired from the team as to why they had not been properly briefed about the negative adjustment in QTA due to non-approval of tariff of Neelum Jhelum Hydropower Project and impact of dollar rupee parity. The Authority also observed that if FCA of June 2021 is not adjusted in the QTA, its impact will be double in the coming months.

However, the Authority was also of the view that adjustment of FCA is different from QTA due to which the latter would not be possible. The Authority directed Nepra team and CPPA-G to sit together and find out a way to sort this issue so that positive impact of FCA should also be reasonable.

Copyright Business Recorder, 2021