Nepra approves refund of Rs 2.77 per unit

National Electric Power Regulatory Authority (Nepra) on Thursday approved refund of Rs 2.77 per unit overcharged by the power Distribution Companies (Discos) from consumers in September 2016 under monthly fuel adjustment mechanism. Nepra has also sought a reply from Ministry of Water and Power and National Transmission and Despatch Company (NTDC) on artificial loadshedding despite availability of surplus power.
The decision was taken at a public hearing on a petition filed by the Central Power Purchasing Agency (CPPA). Chairman Nepra, Brigadier Tariq Saddozai(retired) presided over the proceedings. The financial impact of the decision would be Rs 20 billion.
The consumers, who consume up to 300 units in a month, are not eligible for refund in case of any reduction but impact of increase in fuel price will be passed on to them.
The CPPA delivered 10,034 GWh in September, total price of which was 36.845 billion. The CPPA has calculated basket price of different sources of fuels at Rs 3.6718 per unit in September over the reference fuel charges of Rs 6.4326 per unit.
Chairman Nepra, (who has an antagonistic relationship with the Ministry of Water and Power subsequent to their disagreement on tariff determinations for new power generation and transmission projects) was visibly angered at NTDC for artificial loadshedding despite the fact that surplus capacity was availability in the country. He argued that National Power Control Centre (NPCC) operated power plants 49 per cent less capacity which unleashed artificial loadshedding. "When electricity is available in the country then why are people not getting electricity," said the Chairman Nepra.
Chief Engineer NTDC took the stance that loadshedding of 6-8 hours in urban and rural areas is the policy of the government. On this, the Chairman Nepra asked whether it is the policy of the government not to provide electricity to the people despite surplus availability, adding that if Water and Power Ministry has formulated any such policy, Nepra would seek a response.
He maintained that the role of the regulator is to monitor power sector's situation and woes of the people. National Power Control Centre operated those thermal power plants which generate expensive electricity on purpose whereas plants which produce cheaper electricity were not run at full capacity, the Nepra Chief added. Nepra's technical experts observed that a financial loss of Rs 6 billion was inflicted on the consumers by reducing generation from less expensive and efficient power plants. Electricity was generated at Rs 12.3 per unit on HSD but those plants which use cheaper fuels like RFO and gas were not run at full capacity.
The chairman Nepra also inquired why electricity had not been generated from Nandipur Power Plant for the last two months. He added that when Nepra has announced its tariff determinations on the Ministry's petitions then why is the Ministry not notifying the decision? The chairman Nepra concluded that preparations are under process to challenge the Nepra's decision in the court.