ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has approved negative adjustment of Rs 2.32 per unit in power Distribution Companies (Discos) for December 2022 under monthly Fuel Charges Adjustment (FCA) mechanism.
During the hearing on January 30, 2023, Nepra observed that energy from costlier RFO-based power plants was generated to the tune of over Rs 1.003 billion, during the month of December 2022.
The Authority has been directing NPCC/NTDC and CPPA-G repeatedly to provide complete justification in this regard, to the satisfaction of the Authority and submit complete details for deviation from Economic Merit Order (EMO), showing hourly generation along with the financial impact for deviation from EMO, if any, and the reasons, thereof.
It was observed that during December 2022, the System Operator had curtailed the drawl of energy from Thar energy projects i.e. Thar Energy Limited and Engro Power Thar Limited during certain hours, which resulted in out of merit generation from expensive/inefficient power plants.
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The Nepra observed that curtailment of economical Thar energy projects led to a financial impact of Rs 587.86 million. The Authority, during the hearing, directed NTDC professionals to conduct a meeting with the relevant professionals of NEPRA and provide their clarifications/justifications for curtailment of load.
Accordingly, a meeting was held with the relevant professionals of NTDC and NPCC, however, no solid justifications have been provided by NTDC regarding the resolution of the abovementioned system constraint. Accordingly, the amount of Rs.587.86 million has been withheld from the claim of CPPA-G for the month of December 2022.
As per the data of FCA for December 2022, submitted by CPPA-G, AL-Noor Sugar Mills Limited (ANSML) supplied 1.18 GWh to Sepco at a cost of Rs 7.14 million based on the Authority’s approved rate of Rs 6.04/kWh. The CPPA-G included the energy & cost of electricity supplied by ANSM as part of overall pool cost.
The Authority, however, while approving the Power Acquisition Contract (PAC) filed by Sukkur Electric Power Company Ltd (Sepco) for Purchase of 8 MW from ANSML under Nepra Interim Power Procurement (Procedures and Standards) Regulations 2005, decided that since the power acquisition contract is signed between ANSML and Sepco, therefore, the costs must be accounted for in the basket of Sepco instead of CPPA-G.
The negative adjustment shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up to 300 units, Electric Vehicle Charging Stations (EVCS) and agriculture consumers of all the Discos.
The negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective of their consumption level. The adjustment shall be shown separately in the consumers’ bills on the basis of units billed to the consumers in December 2022. Discos shall reflect the fuel charges adjustment in respect of December 2022 in the billing month of February 2023.
Copyright Business Recorder, 2023