Home »Fuel and Energy » Pakistan » Discos’ consumers: Nepra approves Rs 26 billion refund for June

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  • Jul 26th, 2017
  • Comments Off on Discos’ consumers: Nepra approves Rs 26 billion refund for June
The National Electric Power Regulatory Authority (Nepra) Tuesday approved Rs 26 billion refund for consumers of power Distribution Companies (Discos) by reducing tariff by Rs 2.23 per unit for June 2017 under the monthly fuel price adjustment formula. The decision was taken at a public hearing presided over by Vice Chairman, Nepra, Saif Ullah Chatha in the absence of Chairman, Brig. Tariq Saddozai (retired). Major Haroon Rashid (retired) Member Balochistan, Himayat Ullah Khan, Member Khyber Pakhtunkhwa and Syed Masood ul Hassan Naqvi Member Sindh also attended the meeting.

The representatives of the Central Power Purchasing Agency-Guaranteed (CPPA-G) and National Power Control Centre (NPCC) were available to questions raised by the Authority members. The reduction in tariff will not be applicable on K-E consumers, lifeline consumers and agriculture consumers. The CPPA-G had recommended refund of Rs 2.13 per unit to the consumers of Discos for June 2017 under monthly fuel price adjustment mechanism. However, MD, CPPA-G, Muhammad Rehan informed the Authority that Rs 952 million with respect to M/s Rousch was mentioned twice, requesting that only Rs 952 million be taken in total cost.

The reduction of Rs 25 billion in fuel cost component was due to favourable generation mix including Rs 12.2 billion on account less prices of furnace oil. This trend is witnessed in the last two months. Nepra officials informed the Authority that CPPA-G also claimed fuel cost of M/s Haveli Bahadar Shah at reference tariff of Rs 8.018 per unit in June despite the fact that the Authority approved FCC of Rs 7.7633 per unit from May 2017. Accordingly, for FCA of June 2017, FCC of Rs 7.7633 per unit has been used resulting in reduction of around Rs 20 million in total cost. The Nepra official also informed the authority that data is required to be filed within 3 days of the close of the month but received on July 14th and asked CPPA-G to provide reasons thereof.

It was also revealed that transmission losses of June 2017 were within the limits of allowed percentage of three per cent. Masood Akhtar, an official of Nepra, in his comments said that the Ministry of Water and Power is giving priority to public sector gas-fired power plants over most efficient IPPs like Saif, Saphire and Orient. Ilyas Ahmad of NPCC agreed with Nepra official, saying that NPCC has written letters to the concerned Ministries that priority should be given to efficient plants at the time of gas allocation.

However, MD CPPA-G claimed that the two public sector power plants mentioned by the Nepra official are connected to the systems of SSGC and SNPGL and the Ministry has different viewpoint on this issue, adding that gas availability in the two companies and their technical constraints are different. It was also noted that more electricity was being supplied from a small canal hydropower plant, ie, Kumhar Wala plant established by Punjab government. MD CPPA-G said that AEDB is yet to get approve its PPA from the Economic Co-ordination Committee (ECC) of the Cabinet.

The indexation of coal-fired power plant in Sahiwal also came under discussion. It was stated that more than 1100 MW electricity was supplied from Sahiwal during Ramazan. Nepra also raised the issue of energy being supplied from Chashma nuclear power plant since December 2016. The project was granted provisional tariff for the plant and since the Authority has taken a decision with respect to tariff of nuclear power plant, its exact indexation should be included in the petition.

According to CPPA-G petition, total generation in June 2017 was 11,458m23 GWh, of which hydel generation was 3,490 GWh( 30.4 per cent of total generation), , coal 652.2 GWh, HSD 155.4 GWh, RFO 2,559.9 GWh, gas, 1,111.8 GWh, RLNG,1,407 GWh, nuclear 657 GWh, import from Iran 53.9 GWh, mixed 26.6 GWh, wind,195.6 GWh, baggasse 94 GWh, solar, 54.2 GWh. Power sale to IPPs was 13.95 GWh whereas transmission losses were recorded at 233.5 GWh, total cost of which was Rs 220.9 million. The net delivered electricity in June 2017 was 11,210.8 GWh, cost of which has been calculated at Rs 52.627 billion.

In June , per unit cost of electricity generated on coal has been calculated at Rs 4.3 per unit, HSD Rs 14.35 per unit, RFO Rs 9.49 per unit, gas 4.25 per unit, RLNG Rs 7.45 per unit, nuclear 1.03 per unit, import Iran Rs 10.63 per unit, mixed, Rs 6.9775 per unit, baggasse, Rs 6.17 per unit. The total per unit cost of electricity generated has been calculated at Rs 4.4374 per unit and after deduction of sale cost of power to IPPs and transmission losses, the total per unit cost was 4.6943 against reference fuel charges of Rs 6.8283/kWh.



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