ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased Discos tariff by Rs 1.11 per unit for September 2020 under monthly fuel prices adjustment mechanism amid accusations that efficient power plants were not fully utilized.

According to the Nepra, as per the data submitted by CPPA-G, Discos purchased 11.9 GWh from Captive Power Plants (CPPs) during September 2020, for which CPPA-G provided actual details of energy purchased from these plants.

According to the details provided by CPPA-G, the actual fuel cost of this energy is Rs.77.067 million. The amount claimed by CPPA-G for CPPs includes the impact of GIDC in the gas prices, however, Supreme Court of Pakistan, in its decision of August 13, 2020, restricted the recovery of GIDC after July 30, 2020.

The Nepra says, in view, thereof, the impact of GIDC has been excluded from the instant cost of CPPs claimed by CPPA-G during September 2020. Accordingly, the total cost for CPPs has been worked out as Rs.57.12 million, after excluding therefrom the impact of GIDC. This has been considered while working out the FCA of September 2020.

The Authority also during the hearing observed that, prima facie, certain efficient power plants were not fully utilized and instead energy from costlier RFO & HSD based power plants was generated to the tune of over Rs.10.834 billion (Rs.9.491 billion from RFO and Rs.1.3 billion from HSD based power plants) during the month of September 2020. The Authority has been directing NPCC/NTDC & CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from EMO, showing hourly generation along-with the financial impact for deviation from Economic Merit Order (EMO), if any, and the reasons, thereof.

Although, NPCC/NTDC provided details of plants operated on RFO/HSD along-with reasons thereof and also presented during the hearing, however, an in-house analysis has also been carried out, to work out the financial impact due to deviation from EMO based on the information submitted by NPCC and subsequent discussions made post hearing with NPCC and CPPA-G. As per the in-house analysis, workings carried out, the net amount deductible from the overall claim due to deviation from EMO owing to technical constraints and underutilization of efficient power plants works out as Rs.2.0775 billion. The Authority has decided not to allow this amount in the instant FCA until NPCC/NTDC and CPPA-G provide the required details along with complete justification in this regard to the satisfaction of the Authority.

Copyright Business Recorder, 2020