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ISLAMABAD: National Electric Power Regulatory Authority (Nepra) has increased electricity tariff of Distribution Companies (Discos) by Rs 5.95 per unit for January 2022 under monthly Fuel Charges Adjustment (FCA) mechanism.

Discos will recover Rs 58 billion from their consumers under the garb of FCA. The increase will be applicable to all the consumer categories except lifeline consumers and will be shown separately in the consumers’ bills on the basis of units billed to the consumers in the month of January 2022. Discos will reflect the fuel charges in the billing month of March 2022.

On February 28, 2022, during the hearing, the Authority also observed that energy from costlier RFOIHSD-based power plants was generated to the tune of over Rs.43.620 million during the month of January 2022.

The Authority was of the view that it has been directing NPCC/ NTDC & CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from Economic Merit Order (EMO), showing hourly generation along-with the financial impact for deviation from EMO, if any, and the reasons, thereof.

Rs136bn grant sought to reduce power tariff by Rs5/unit

The Authority observed that the required data/ information was submitted by CPPA-G along-with the monthly FCA data of January 2022; however, the same was not as per the requirements of the Authority. Accordingly, CPPA-G was directed to submit the report as per the desired format for consideration of the Authority.

The Authority has calculated the fuel cost for the month of January 2022, after accounting for the adjustments, and including costs arising from the application of various factors, as provided in the respective PPAs of the Power Producers and claimed by CPPA-G in its FCA request.

The Authority maintained that the amount arising out from application of PPA factors, for the six RFO based IPPs, incorporated under 2002 Power Policy, is being allowed on provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing suo moto proceedings against RFO based IPPs.

NTDCL reported provisional T&T losses of 299.79 GWh based on energy delivered on NTDCL system during January 2022. NTDC in addition also reported T&T losses of 29.2 16 GWh for PMLTC (HVDC) line. NTDCL is allowed T&T losses of 2.80% only at 500KV and 220KV network, while PMLTC (HVDC) is allowed T&T losses of maximum up-to 4.3%.

Accordingly, for January 2022, T&T losses of 297.82 GWII have been verified for NTDCL system based on units delivered only at 500KV and 220 KV network. Thus, 1.97 GWh has been deducted from NTDCL claimed T&T losses while working out instant monthly FCA. Regarding PMLTC (HVDC), the claimed T&T losses, i.e., 29.2 16 GWh, i.e., 2.65%, being within the Authority’s allowed limit have also considered while working out the FCA of January 2022.

The Authority, after incorporating the adjustments, has reviewed and assessed an increase of Rs.5.9490/kWh in the applicable tariff for Discos on account of variations in the fuel charges for the month of January 2022.

Member Sindh, Rafique Ahmad Shaikh, in his dissenting note commented that as per the data submitted by NPCC, the average RLNG allocated to the power sector was 124 MMCFD against the total demand of 510 MMCFD that resulted in financial impact of Rs 7.74 billion in January, 2022.

“As the RLNG is imported fuel and its availability can be ensured through better supply chain management, accordingly, such mismanagement into the availability of required RLNG can’t be passed on to consumers,” he added.

Shaikh also expressed reservations on the purchase of electricity from all those IPPs, whose PPAs were amended/ extended without approval of the Authority.

Copyright Business Recorder, 2022


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