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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased Discos’ tariff by Rs0.51 per unit for the third quarter (Jan-March) of FY 2021-22 under the Quarterly Tariff Adjustment (QTA) mechanism.

According to Nepra’s determination Discos will recover additional Rs 12.762 billion from consumers as capacity payment, variable O&M, Use of System Charge and Market Operator Fee (MOF), the impact of T&D losses on monthly FCA, recovery on incremental units, Kapco and legal charges adjustments.

On June 15, 2022, Nepra conducted a public hearing wherein questions were asked from representatives of a couple of Discos for variation in their figures.

The Authority in the determinations of the CPPA-G Market Operation fee observed that CPPA-G reflects the costs incurred on account of legal/litigation charges in the capacity costs billed to DISCOs. In view thereof, CPPA-G was directed to include the said cost in its market operation fees and get it approved by the Authority.

CPPA-G, however, in the costs billed to DISCOs for the 3rd quarter of the FY 202 1-22 has included legal charges of Rs.33.9 million as part of capacity charges. The Authority, being consistent with its earlier direction in the matter, has decided not to include the amount of legal charges in the instant quarterly adjustments. Accordingly, while working out the instant quarterly adjustments, the amount of legal/litigation charges of Rs.33.9 million have not been considered and the same has been deducted from the claim of Discos.

Discos allowed to implement Rs7.91/unit tariff hike in 3 phases

The CPPA-G in its data has included the negative amount of Rs.2.016 billion on account of capacity charges of Kapco. The Authority noted that Kapco’s PPA was amended by CPPA-G, wherein it was agreed that the plant will be operated without payment of capacity charges from July 2021 onward and only energy charges would be paid. Upon inquiry from CPPA-G regarding the inclusion of negative capacity charges of Rs.2.016 billion of Kapco, it was submitted that claimed cost is on account of truing up of costs pertaining to previous periods as per the PPA.

According to the determination, although CPPA-G provided some detail in this regard, however, the Authority decided to provisionally not consider the claimed amount of Kapco and would consider the same in the subsequent quarterly adjustments, once it is verified. Accordingly, the impact of the same has been adjusted back in the claim of DISCOs.

Copyright Business Recorder, 2022

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