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  • Apr 13th, 2017
  • Comments Off on Two-part tariff for NTDC approved by Nepra
National Electric Power Regulatory Authority (Nepra) has approved a two-part tariff for National Transmission and Despatch Company (NTDC) to meet 7.4 per cent increased revenue requirements: Rs 31.413 billion in 2016-17 from Rs 29.247 billion in 2015-16 for provision of transmission and allied services to Central Power Purchasing Agency -Guaranteed (CPPA-G) and power Distribution Companies (Discos). The regulator has determined fixed charge (USCF) at Rs 136.04/kW/month and variable charge (USCV) at Rs 0.163363/kWh x Losses and Load (LaL) factor.

According to the tariff determination, NTDC- the petitioner - had submitted transmission scheme for the dispersal of power from Neelum Jhelum, Karot and Azad Pattan hydropower projects. PC-I of these projects was approved by ECNEC on March 2, 2015. NTDC had further submitted that construction of 500 kV double circuit transmission line for dispersal of power from 969 MW Neelum-Jhelum hydropower project is expected to be completed by December, 2016 however its latest status is unclear. The petitioner also submitted that selection of EPC contractor for construction of 765 kV Transmission Line from Dasu Project to Islamabad is at an advanced stage.

The Authority after public hearing of petition and evaluation of available documents, allowed NTDC to charge the tariff on following terms and conditions: (i) Use of system charges - since FY 2015-16 has already lapsed, therefore, the Authority has incorporated the impact of difference in the tariff determined for the FY 2015-16 and the tariff actually charged by the petitioner during this period, in the assessed revenue requirement for the FY 2016-17 as Prior Year Adjustment (PYA); (ii) the petitioner will pay Rs 117.79 million to CPPA-G on account of market operation fee of CPPA-G for the FY 2015-16, which has been included in the revenue requirement of NTDCL while working out the PYA for the FY 2015-16; (iii) in case of DISCOs, NTDCL will charge only the fixed charges ie Rs 136.04/kW/month. The variable charge will only be applicable to the energy in kilowatt-hours (kWh) transmitted / delivered during a billing period; (iv) recording of the maximum demand in kW and energy delivered in kWh will be carried out at meters installed at the common delivery metering points ie inter-connection point between NTDC transmission system and the bulk power consumer, NTDC system and the transmission system of a special purpose transmission licencee, NTDC system and the transmission system of another country connected under an arrangement approved by the federal government and NTDC system and a Disco receiving power in bulk either for sale to its own consumers or on behalf of another distribution company or a BPC located in another distribution company.

The directions of the Authority given to NTDC are follows: (i) provide detailed evacuation plan in terms of all upcoming power projects by June 30, 2017; (ii) ensure completion of its planned activities within the prescribed timeframe to avoid tripping incidents in future and progress in this regard be shared with the Authority on quarterly basis; (iii) file next tariff petition, ie, for the FY 2017-18 on the basis of calculation of MDI on coincidental basis and to share the latest progress on the implementation of system for recording of MDI on coincidental basis with the Authority immediately after the issuance of this determination and on quarterly basis afterwards: (iv) file next tariff petition in time either under SYT or MYT regime, as the petitioner in the past has failed to file tariff petitions on a timely basis, ie, for every financial year; (v) apprise the Authority about the progress of five 220KV grids stations along-with allied transmission lines of KPK by June 30, 2017;(vi) provide proper evidence and detailed calculations for the requested amounts for the future tariff petitions; (vii) complete process of creation of separate post retirement funds and to transfer the amount of provision already allowed by the Authority in the post-retirement benefits fund; (viii) provide complete details in respect of new hiring made during the FY 2015-16 and FY 2016-17 along-with their financial impact in its next tariff petition; (ix) ensure implementation of reliability indices for all its future projects; (x) provide a detailed report on the improvements in networks undertaken to prevent transmission system breakdowns resulting in black outs and tripping; (xi) provide loading position of its 500 kV and 220 kV components to the Authority on quarterly basis; (xi) submit a detailed report regarding the reasons for major incidents of brownouts and blackouts and the preventive measures taken or to be taken to avoid such frequent system collapses in future; (xii) ensure installation of Secured Metering System (SMS) on remaining Common Delivery Points (CDPs). A comprehensive report in this regard shall also be submitted to the Authority by June 30, 2017; (xiii) submit updated progress regarding dispersal of power from major power plants in southern parts of the country on monthly basis; (xiv) share the ToRs set for the engagement of international consultant for the capacity building of NTDC's planning department;(xv) provide a detailed progress regarding evacuation of power from large hydro power projects on quarterly basis; and (xvi) pursue the matter with Tavanir Iran on a war footing basis and update the Authority on every step forward and to submit the ToRs of the Joint Working Group formed in this regard.

Nepra has also determined the Discos will maintain an average power factor during a billing period at the delivery metering point of at least 85% lagging. In the event of the said power factor falling below 85% in a billing period the concerned Discos will pay to NTDC a penalty as determined by the Authority for general applicability on the recommendations of NTDC and after consultation with the generation and distribution licencees.



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