Charges against EOL applications: LSM units urge Lesco to comply with Nepra clarification

LAHORE: The Large Scale Manufacturing (LSM) units, particularly the export-oriented ones, have urged the Lahore Electric Supply Company (Lesco) management to comply with National Electric Power Regulatory Authority (Nepra) clarification regarding payment of charges in case of extension of load above 5 megawatt up to 7.5 megawatt.

According to a letter written to the Lesco management, copy available with Business Recorder, the LSM sector has mentioned a circular letter No. 12(13)/2016-DISCO-1 dated 25.03.2022 from the Ministry of Energy, directing categorically and unambiguously that the industrial consumers are not required to pay grid sharing charges including transmission lines charges and cost of land for the entire load rather these charges are proportionally applicable for the incremental load above 5MW upto 7.5MW.

Therefore, the Lesco management has been requested to direct all its formations to comply with the above instructions in letter and spirit and all pending Extension of Load (EOL) cases of the mills should be cleared expeditiously in accordance with the Nepra clarification.

It may be noted that the B-3 consumers having sanctioned load upto 5MW have applied to Discos for extension of load above 5MW to 7.5MW and consequently the Discos had issued demand notices for 100 percent grid sharing charges including transmission line charges and cost of land for the entire load and not for the load above 5MW. The APTMA has sought clarification in this regard.

The provisions of consumer service manual (CSM) Industrial consumers allow extension of load above 5MW to 7.5MW without construction of grid station subject to availability of load in the DISCO’s grid station and capacity in the 11kV existing dedicated feeder and the connection is at least three years old.

Accordingly, the LSM sector had approached Nepra through Ministry of Energy in the month of February for a clarification whether gird sharing charges, including Transmission line charges and cost of land proportionate to load would be charged for extension of load beyond 5MW to 7.5MW. The issue had become a hard nut to crack between the distribution companies (Discos) and the LSM sector and a good number of EOL applications were pending with Discos since last year. Discos were demanding payment of grid sharing charges.

Nepra has clarified that the industrial consumers are not required to pay grid sharing charges including transmission lines charges and cost of land for the entire load rather these charges are proportionally applicable for the incremental load above 5MW upto 7.5MW.

Copyright Business Recorder, 2022