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NEPRA raises power tariff by Rs4.8 per unit


The National Electric Power Regulatory Authority (Nepra) on Friday raised the power tariff by Rs4.8 per unit on account of fuel adjustment for the month of February.

The CPPA-G had requested the power regulator to allow an increase of Rs4.9441 per unit to burden the power consumers with an impact of Rs38.4 billion.

The power regulator conducted a public hearing on March 31, 2022. However, it approved the increase of Rs4.8530 per unit to put an additional burden of around Rs37.7 billion on power consumers.

The power distribution companies will charge fuel cost adjustment (FCA) of February 2022 in the billing month of April 2022 to all consumer categories of XWDISCOs, except lifeline consumers.

Read more: NEPRA rejects Rs28b collection from consumers

This FCA would remain applicable only for one month and it is not applicable to K-Electric consumers.

The authority had observed that the CPPA-G purchased energy of 33.822 GWH from Tavanir Iran in February 2022 at a cost of Rs530.628 million.

However, a contract between the CPPA-G and Tavanir Iran for the import of power up to 104 MW has expired on December 31, 2021.

In view of this, the power regulator allowed the cost of electricity purchased from Tavanir Iran strictly on a provisional basis, subject to its adjustment once the authority decides on the extension in the contract between the CPPA-G and Tavanir Iran or otherwise.

As per the data submitted by the CPPA-G, XWDISCOs purchased 10.148 GWh from Captive Power Plants (CPPs) during February 2022, for which CPPA-G provided actual details of energy purchased from these plants.

According to the details, the actual fuel cost of this energy is Rs51.960 million. The regulator had considered it as per the NEPRA-approved mechanism while working out the FCA of February.

During the hearing, the authority also observed that energy from costlier RFO-based power plants was generated to the tune of over Rs11,301 million during the month of February FCA for the month of February.

Also read: NEPRA cuts 75 paisas per unit in KE tariff

NTDCL, reported provisional T&T losses of 241.142 GWh based on energy delivered on NTDCL system during February 2022. NTDC in addition also reported T&T losses of 22.899 GWh for PMLTC (HVDC) line. 18. NTDCL is allowed T&T losses of 2.80% only at 500KV and 220 KV network, while PMLTC (HVDC) is allowed T&T losses of maximum up-to 4.3%.

The authority has been directing NPCC/NTDC and 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.

During the hearing, NFCC/NTDC explained that due to the non-availability of RLNG as per the requirements, they generated electricity through RFO/HSD-based power plants.

Upon directions of the authority, NPCCINTDC also provided justifications, showing hourly generation along with the reasons for the operation of HSD/RFO.

The power regulator decided not to deduct any amount in the instant monthly FCA on account of deviation from EMO.

In view of the discussion, the authority has calculated the fuel cost for the month of February, after accounting for the adjustments, and including costs arising due to the application of various factors, as provided in the respective PPAs of the power producers and claimed by CPPA-G in its FCA request.

Here it is pertinent to mention that regulator also allowed the amount arising out due to the application of PPA factors, for the six RFO based IPPs, incorporated under the 2002 Power Policy, on a provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing suo motu proceedings against RFO based IPPs.

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