ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) is all set to hear tariff petition of Water and Power Development Authority (Wapda) on November 12, 2020 for increase of its tariff by Rs 1.50 per unit in tariff for 2020-21.
According the tariff petition, Wapda which is undertaking different hydropower projects and informed the regulator that its revenue requirements were determined at Rs 71.349 billion in 2017-18 which have now increased to Rs 177.518 billion in 2020-21, showing a hike of Rs 106.169 billion.
Of this, O&M cost has been estimated to be Rs 19.724 billion in 2020-21, depreciation- Rs 7.728 billion, Sukuk bonds repayment - Rs 1.690 billion, Return on Investment (RoI) power stations - Rs 37.163 billion, RoI on power projects - 32.085 billion and other income - Rs 698 million and regulatory revenue gap - Rs 68.802 billion.
Wapda’s estimated generation which was 33,598 GWh in 2017-18 has reduced to 30,140 GWh. However, its average rate of cost of generation has been increased to Rs 5.89 per unit in 2020-21 from Rs 2.12 per unit, showing an increase of Rs 3.77 per unit.
Wapda, in its tariff petition has further claimed that its total regular hydel levies have been increased by Rs 3.705 billion to Rs 36.599 billion in 2020-21 from Rs 32.892 billion 2017-18. The organization’s arrears of Net Hydel Profit will be (regular + arrears) have decreased by Rs 76.098 billion to Rs 43.058 billion 2020-21 from Rs 119.156 billion in 2017-18.
With reduction in NHP, the average rate of hydel levies which was Rs 3.55 per unit, has been slashed to Rs 1.43 per unit.
Wapda has to pay Rs 21.156 billion to KP as NHP, followed by Punjab - Rs 9.539 billion, AJ&K (WUC)- Rs 5.753 billion whereas Rs 151 million will be paid to Irsa.
Some of the issues framed by Nepra on the petition are as follows: (i) whether request for allowance of O&M on expenses amounting to Rs 15.165 billion, Rs 20,136 billion, Rs 19.079 billion and Rs 19.724 billion for FY 2018, 2019, 2020 and 202 is justified?; (ii) whether depreciation charge and Ijarah rentals amounting to Rs 7.616, Rs 9.284 billion, Rs 9.433 billion and Rs9.418 billion for FY 2018, 2019, 2020 and 2021 is justified respectively; (iii) whether mark-up on NHP loans amounting to Rs 11.024 billion is justified ? and; (iv) whether the inclusion of 64 per cent Diamer Bhasha Dam cost (WACC based return on power stations amounting to Rs 25.468 billion, Rs 31.585 billion, Rs 37.367 billion and Rs 37.163 billion for FY 2018, 2019, 2020, and 2021, respectively) is justified.
Copyright Business Recorder, 2020
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