Discos' consumers: Nepra approves Rs 3 per unit refund for December 2017

The National Electric Power Regulatory Authority (Nepra) on Thursday approved refund of Rs 3 per unit for consumers of power Distribution Companies (Discos) on account of fuel price adjustment for December 2017. The decision was taken in a public hearing presided over by Vice Chairman Saif Ullah Chatha whereas Member KPK, Hamayat Ullah Khan assisted him.
The financial impact is around Rs 21.7 billion and out of which Rs 13.7 billion are from favorable generation mix variance and Rs7.9 billion are due to favorable price variance, especially residual fuel oil (RFO). However, the K-Electric and agricultural consumers as well as domestic users, who consume less than 300 units of electricity per month, will not be enjoying the tariff reduction.
According to Central Power Purchasing Agency (CPPA), 56.3 GWh mix energy was consumed in December against cost of Rs 4.427 million, however, the authority adjusted it at Rs 4.418 million. The CPPA had sought supplemental adjustments of Rs 1.347 billion on account of Chashma Nuclear Power Plant-III and Gencos. However, the CPPA did not provide details of working of the claimed amount. The Nepra official who gave presentation to the Authority said that Rs 373 million are related to Chashma Nuclear Power Plant, Rs 183 to Jamshoro block-I and Rs792 million are on account of NPGC block 1 unit. The CPPA provided details of supplemental charges and requested for allowing it on provisional basis moments before the hearing. However, the Authority did not allow it even after hearing the viewpoint of the CPPA.
The Nepra official also informed the Authority that NTDC's allowed losses are 2.80 per cent at 500 kV and 220 kV systems but in December losses were 2.81 per cent which were slightly higher than the allowed losses. The Authority adjusted the losses. The case officer said if the adjustment claimed by CPPA is excluded, the delivered electricity to Discos has been calculated at Rs 5.1144 per unit against reference price of Rs 8.1037 per unit, the variation is Rs 2.9923 per unit. The representative of CPPA, Muhammad Rehan said that adjustments of Rs 974 million, which are mainly on account of Gencos, are due to difference of Nepra's approved determinations. It's an impact on determinations from July 2017 to November 2017 and CPPA has already scrutinized that the adjustment is in accordance with Nepra's approved adjustments. Similarly, the impact of Rs 372 million on account of Chashma Nuclear III is also in accordance with Nepra's recent determinations.
He said that CPPA adjusted Rs785 million on account of M/s Rousch Power Plant. According to him, the CPPA has already reduced certain amounts from its claims from the previous month, adding that CPPA submits data on the basis of approved invoices. He requested the Authority that the amount of Rs 1.347 billion should not be adjusted as it's a lean period of sale. This amount is not too much to sustain the system but as sale in December and January is very low, any small factor suffered a lot and its financial impacts are too heavy.
The Nepra argued that that the regulator should be allowed to go for due diligences prior to refund the amount to the CPPA. The CPPA, in its petition said that it had purchased 51.47 MW electricity generated on high speed diesel (HSD) in December 2017 which accounted for 0.66 per cent of total supply. The total generation from hydel sources was 1231.53 GWh in December accounting for 15.86 per cent of total generation. The hydel generation had been massively reduced after reduction in water releases from Tarbela and Mangla reservoirs due to closure of canals.
The CPPA purchased 2251.45 GWh electricity produced on residual fuel oil (RFO), 29 per cent of total generation, at a cost of Rs 9.8 per unit whereas the cost of electricity generated by using indigenous gas was Rs 4.41 per unit and its total share in electricity generation was 17167.59 GWh accounting for 27.7 per cent of total generation during the entire month. The electricity generated from RLNG was 395.06 GWh making a 5.09 per cent of total generation, at a cost of Rs 6.33 per unit.
Nuclear power plants delivered 728.6 GWh of electricity at a rate of Rs 1.025 per unit, cheapest amongst all fuels. The electricity imported from Iran was 38.82 GWh in December at a price of Rs 10.63 per unit. The 86.39 GWh were generated through baggasse at cost of Rs 6.25 and 188.75 GWh and 48.78 GWh was purchased from wind and solar respectively.
According to the petition, total energy generated in December 2017 was 7762.84 GWh at a total price of Rs 39.29 billion. The net electricity delivered to power distribution companies was 7519.12 GWh at a cost of Rs 40.06 billion. Out of total electricity generation, losses stood at 2.99 per cent which were higher compared to previous months.