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ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has approved 2.0 percent transmission line losses to Sindh Transmission and Despatch Company (STDC) from its Commercial Operation Date (COD), i.e, January 18, 2018 after Sindh government made hue and cry over the delay in the decision.

The NEPRA awarded the Transmission License to STDC on December 17, 2015 under Section 19 of the NEPRA Act, 1997 to establish its 132 KV double circuit having length of 96.5 KM Transmission Line comprising Aluminum Conductor Steel Reinforced (ACSR) Rail conductor to evacuate electric power from SNPC I & II to K-Electric grid station KDA-33. STDC vide its letter No NEPRA/2015/15 dated 21 December, 2015 filed a tariff petition before NEPRA which, inter alia, also included a request to allow 3% technical losses for its 132 kV double circuit transmission line from SNPC-I & II power plant to KE’s KDA-33 grid station.

“The Authority observed that ST&DCPL has claimed 3% transmission losses taking into account the maximum limit of losses set by NEPRA for the whole system network for transmission. After analysis, the Authority believes that the project under consideration is a 132 kV dedicated transmission line comprising of Aluminum Conductor Steel Reinforcement (“A CSR ’2 Rail Conductor) for which level of technical losses should reasonably be in the range of 0.8% - 1%. In view thereof the Authority decided to cap the loss threshold for ST&DCPL at 1%.

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Being aggrieved from allowed losses and certain other components of tariff in the said determination, STDC filed a Motion for Leave for Review on February 17, 2017 under Rule 16 (6) of NEPRA (Tariff Standards and Procedure) Rules, 1998.

Meanwhile, STDC achieved its Commercial Operation Date (COD) on January 18, 2018. Subsequent to COD of STDC, the Authority issued its Review Determination dated 14 June 2018 wherein the Authority decided that “keeping in view the real time data which shows higher than NEPRA’s allowed losses, and to protect the interest of STDC which is only a transmitter of electricity, the Authority allows a maximum of 1.5% transmission losses provisionally for the period of six months from COD.”

Accordingly, annual average transmission losses are provisionally allowed with a cap of 1.5%. Progressive monthly losses will be adjusted accordingly in line with the mechanism allowed to NTDCL. K-Electric is also required to ensure that the voltage at KDA-33 grid station remains within acceptable limits at all times. In order to do that K-Electric has directed to take all remedial measures including installation of capacitor banks if required within a period of six months.

Complaining of the delay in decision making by the Regulator, Sindh Government stated “it is known principle of equity that justice delayed is justice denied” as NEPRA took more than four years to firm up the actual losses for this project. The Authority determines tariff under rule 16(2) of Tariff Standard and Procedures Rules, 1998 as amended in 2011, which provides maximum six-month time (extendable further 1 month). If Authority had followed the Tariff Rules in letter and spirit it had to decide the Tariff in the given time frame under its Tariff Rules.

NEPRA has concluded that since 1.5% transmission line losses were allowed for a period of six months from COD on a provisional basis and afterwards revised to a maximum cap of 2.0% transmission line losses based on the results of third party study applicable from the date of the decision of November 4, 2020 therefore STDC may be allowed 2.0% transmission line losses from its COD dated January 18, 2018.

Copyright Business Recorder, 2024

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