Nepra denies Re0.85 per unit hike in tariff requested by XWDiscos

ISLAMABAD-National Electric Power Regulatory Authority has denied a hike of Re0.85 per unit in tariff requested by Power Distribution companies (XWDiscos) and instead has slightly decreased it on account of fuel charges adjustment for the month of February.

CPPAG had submitted a request for an increase of Rs 0.8569 per unit in tariff on account of fuel adjustment for the month of February 2023. In a petition submitted to NEPRA, on the behalf of power distribution companies (XWDISOCs), the CPPA-G said that for the month of February the reference fuel charges from the consumers were Rs 7.2120/unit while the actual fuel cost was Rs8.0689/unit,. Therefore, it should be allowed to pass the increase of Rs0.8569/unit to the consumers. However, NEPRA after detail analysis of the data has calculated that actual fuel charge component for February 2023 was Rs.7.21 14/unit which was Rs 0.0006/unit higher than the reference fuel charges of Rs 7.2120/unit charged from the electricity consumers during February, said NEPRA in its decision issued here.

The authority had conducted public hearing on the CPPA-G petition. During the hearing, the Authority also observed that energy from expensive power plants was generated, during the month of February 2023. It was observed that during February 2023, the system operator had curtailed the drawl of energy from efficient power plants due to Thar transmission line issue that cost Rs5,069 million, due to RLNG contracts, Rs.468 million, due to permanent fault, Rs.848 million, and due to deviation from EMO Rs.1.08 million.

Permanent fault was on Guddu-Shikarpur CCT. As a general statement, NPCC has informed that the generation was curtailed from economical plants in South to maintain balance of generation in North-South and to follow the winter table for HVDC. It is pertinent to mention that the Authority during the FCA hearing of XWDISCOs for the month of February 2023 directed NTDC/CPPA-G to segregate the financial impact due to system constraints into separate heads of impact due to North South constraint, RLNG take or pay contractual obligations, faults in transmission system and constraint of Thar Matiari CCKT within three  days of the hearing.

Pursuant to the directions of the Authority, NTDC/NPCC and CPPA-G has provided its response, however, certain discrepancies have been observed in the submitted data. Therefore, further clarifications have been sought from CPPA-G/NPCC. In view of the above, the financial impact on account of system constraints underutilization, amounting to Rs. 6,385 million Rs.1.08 million respectively, is provisionally withheld from the FCA claim for the month of February 2023, till the time NTDC provides complete justification to the satisfaction of the Authority.

The financial impact on account of system constraints underutilization, amounting to Rs. 6,385 million Rs.1.08 million respectively, is provisionally withheld from the FCA claim for the month of February 2023, till the time NTDC provides complete justification to the satisfaction of the Authority, said the decision. The Authority, after incorporating the adjustments, has reviewed and assessed a decrease of Rs.0.0006/unit in the applicable tariff for XWDISCOs on account of variations in the fuel charges for the month of February 2023.

The relief shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, Electric Vehicle Charging Stations (EVCS) and Agriculture Consumers of all the XWDISCOs. The decision said that XWDISCOs shall reflect the fuel charges adjustment in respect of February 2023 in the billing month of April 2023.

Article source: https://www.nation.com.pk/19-Apr-2023/nepra-denies-re0-85-per-unit-hike-in-tariff-requested-by-xwdiscos