National Electric Power Regulatory Authority (Nepra) has allowed K-Electric to use RLNG as alternate fuel on provisional basis to operate its plants at optimum capacity. According to Nepra, the permission is subject to final decision and an order of refund for the protection of the consumers, while the proceedings are pending before the Authority. The immediate application of RLNG as alternative fuel will be subject to utilization of RLNG after utilization of minimum quota of 180 MMCFD of local gas and dispatch will be strictly in accordance with the economic merit order. KE will not be operation as on simple cycle.
On April 30, 2018, KE had requested Nepra to allow RLNG as an alternate fuel for its existing power plants. According to KE, the request has been filed in purview of the Cabinet Committee on Energy's (CCoE ) directives of April 23, 2018, wherein Sui Southern Gas Company (SSGC) was directed to increase gas supply to KE under an arrangement of 130 MMCFD of natural gas and 60 MMCFD of RLNG to meet KE's minimum gas requirement of 190 MMCFD.
KE also requested the Authority to provisionally approve inclusion of RLNG as an alternate fuel with effect from the date of CCoE's directives as according to KE, it started operating its power plants on RLNG with effect from the date of CCoE's directives. 2. The Authority admitted the application of KE on May 9, 2018 and decided to initiate proceedings to modify the existing mechanism of fuel cost component on account of RLNG. The Authority also considered the request of KE for immediate application of RLNG as alternative fuel.
In order to bridge the demand and supply gap and to provide immediate relief to end-consumers, the Authority has decided to allow immediate application of RLNG as alternative fuel in the instant case subject to an order of refund for the protection of the consumers, while the proceedings are pending before the Authority.
This will also be subject to utilization of minimum quota of 180 MMCFD of gas for KE. The Authority has also directed KE to execute Gas Supply Agreement with Sui Southern Gas Supply Company Limited at the earliest.
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