National Electric Power Regulatory Authority (Nepra) has identified as many as 39 issues pertaining to formation of K-Electric's new Multi Year Tariff (MYT). Also, the regulatory body has fixed 27 and 28 September the date of public hearing on KE's integrated MYT petition here at a local hotel.
The regulator has invited all interveners besides 39 parties concerned mainly government officials to attend the hearing and to give their views in the case so as to assist the Authority in arriving at an informed decision. The KE has already requested the regulator to extend the applicability period of the existing tariff till 30 June 2026 along with some modifications/ adjustments thereto.
The last MYT was determined back in 2002 for 15 years, which expired on 30 June this year. The regulatory body took some three months to call a public hearing on the issue. Following issues would be hashed out at the forthcoming hearing. Whether the petitioner's request for continuation of existing MYT is justified?
Whether the plan of the petitioner (K-Electric) to procure 650 MW front CPPA-G till 2020 is justified? What should be the rates for these purchases ie Basket or Marginal rates? K-Electric to respond this issue in light of the CCI decision dated November 8, 2012. Whether separate charging of Meter Rent from the consumers is justified? Whether separate charging of Bank Collection Charges from the consumers is justified? Whether the non-payment of interest on consumer's security deposits is justified?
Whether the tariff should be based on price cap or revenue cap regime? Whether the duration of MYT control period should be 10 year as proposed by the Petitioner? Whether the proposed change in sharing mechanism's thresholds from 12 percent, 15 percent and 18 percent to 15 percent, 18 percent to 20 percent are justified?
Whether the existing calculation methodology with respect to Claw Back Mechanism is justified? Whether the existing mechanism of calculating the weighted average cost of furnace oil while working out rite monthly / quarterly adjustment is justified? Whether the Petitioner's request for continuation of existing monthly, quarterly and annual adjustment mechanism is justified? Whether the request of the petitioner to allow working capital allowance to cover late payments by the government entities and Tariff Differential Claims (TDC) by the Government is justified? Whether the request of the petitioner for inclusion of force majeure clause for adjustment of irrecoverable costs due to business disruption in case of forced majeure event is justified? Whether the Petitioner's assumption of continuation of the protection under the Implementation Agreement throughout the tariff control period including the guarantee of payment of strategic customers is justified?
Whether the Petitioner's proposed increase of Rs 0.66/ kwh on the existing O&M cost allowed by the Authority is justified? Whether the claimed addition in Generation, Transmission and Distribution by the Petitioner is justified and what is the Petitioner's financing plan in this regard? Whether the Petitioner have a Control Center to dispatch and control its generation facilities.
Whether the current practice of the petitioner to carry out loadshedding, despite having sufficient own generation facilities, is justified? Whether the request of the Petitioner to maintain the existing target of auxiliary consumption of 6.1percent for its entire generation fleet is justified?Whether the request of the Petitioner to allow efficiency factor "X" as lower of 2 percent or 30 percent of increase in CPI allowing annual indexation in O&M cost component of generation is justified?
Whether the Petitioner has renewed/entered into long term Fuel Supply Agreements (FSA) for firm supply of Furnace Oil?
Whether the Petitioner has signed Gas Supply Agreement with Sui Southern Gas Supply Company (SSGCL) for firm supply of gas? Whether separate target of losses should be set for Transmission (220 kv) amid Distribution (132KV and below) segments?
Whether the planned addition of new connection (ie over 800,000 Nos.), demand in MW and energy sale in GWh is justified? K-Electric may provide consumer category wise details in this regard.
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