With reduction in tariff, Discos will refund Rs 24 billion to the consumers for November 2016 across Pakistan except consumers using up to 300 units monthly and agriculture consumers. Out of total refund of Rs 24 billion, Rs 8.9 billion are on account of change in price of fuel and Rs 15 billion on account of generation mix. Chairman Nepra clarified that Discos overcharged consumers in November and that money is being refunded to them.
According to Chairman Nepra, Nandipur power plant was run at only 0.85 per cent in November which is negligible. However, he enquired from CPPA why it has sought a tariff of Rs 10.1 per unit when Nepra had approved tariff of Rs 4.94 per unit. He also urged CPPA to get the Nandipur tariff notified.
"Try to get Nandipur''s tariff notified as you will not get anything further and move forward," he added. The representative of CPPA argued that the regulator should allow requested tariff as backlog is increasing each passing day. It was also stated that Nandipur''s generation was negligible but overhead charges are included in the demanded tariff. Tariq Saddozai further stated that the government has not notified Discos'' tariffs of 2015-16 which is why Nepra is compelled to adopt fuel price benchmarks of 2014-15 when the price of furnace oil was Rs 69,000 per ton.
"If the tariffs of 2015-16 were notified the difference of furnace oil benchmark price would have been massively reduced, ie from 69,000 per ton to Rs 48,000 per ton. The difference between Rs 48,000 and Rs 34,000 per ton is less wide if compared with Rs 69,000 per ton with Rs 48,000 per ton," he continued. In reply to a question, he said since there is no change in Nepra Act, 1997, the regulator has no issue. However, he added that the proposal of amendment in Nepra Act in on the agenda of CCI, so let''s see what happens.
CPPA, in its petition has claimed that it has not purchased a single unit of electricity generated on coal and High Speed Diesel (HSD) in November 2016, hence, did not quote their price in the tariff petition. The total generation from hydel sources was 2,842.53GWh in November which was 41 per cent of total generation. However, hydel generation has massively reduced from last week after reduction in water releases from Tarbella and Mangla reservoirs.
The CPPA purchased 1,345GWh electricity produced on Residual Fuel Oil (RFO), 19.39 per cent of total generation, at a cost of Rs 8.2 per unit, whereas the cost of electricity generated by using gas was Rs 5.5 per unit. Electricity generated from gas was 1,925GWh which is 27.7 per cent of total generation during the entire month. The electricity generated from RLNG was 286GWh, 4.13 per cent of total generation, at a cost of Rs 6.9 per unit which was Rs 1.40 per unit higher than the gas-based generation. Nuclear power plants delivered 338GWh of electricity at a rate of Rs 1.18 per unit, cheapest amongst all fuels. The electricity imported from Iran was 35GWh in November at a price of Rs 10.63 per unit. The price of mixed electricity was Rs 7 per unit, baggasse at Rs 5.98 for 46.6GWh and 45.3GWh was purchased from wind and solar respectively.
According to the petition, total energy generated in November 2016 was 6,935GWh at a total price of Rs 24.8275 billion or Rs 3.5799 per unit. CPPA has included Rs 683.8 million of previous adjustment/supplemental charges and Rs 180.9 million from sale of 11.75GWh power to IPPs at a price of Rs 15.4 per unit. CPPA has also reported 83.6GWh, total price of which was Rs 180.9 million or Rs 0.0509 per unit.
On the basis of data, CPPA proposed a reduction Rs 3.60 per unit for November 2016 since the generation cost was Rs 3.7033 per unit in November 2016 against reference price of Rs 7.3040 per unit. The Authority approved reduction of Rs 3.60 per unit. The Authority also approved an increase of 60 paisa per unit in tariff of Karachi Electric for November 2016 over September 2016, K-E in its tariff petition claimed that its fuel price variation in November over September 2016 was Rs 249.115 million (20.627 paisa per unit) and power purchase variation was Rs 477.445 million (39.533 paisa per unit). The total adjustment was Rs 726.560 million or 60.160 paisa per unit. According to K-E the cost of fuel and power purchase claim does not include any amount of late payment surcharge/ mark up/ interest. The Authority did not further probe generation and power purchase data presented by the KE team and approved the request.