ISLAMABAD: National Transmission and Despatch Company (NTDC) on Wednesday urged National Electric Power Regulatory Authority (Nepra) to release its withheld amount of Rs 42 billion to run financial affairs of the company as the federal government has not stopped extending guarantees to raise debts internationally.
NTDC raised this issue during a public hearing on FCA for September 2023, officiated by Chairman and all members of the Authority. CPPA-G has sought a positive adjustment of Paisa 55 per unit in FCA for September 2023 whose total financial impact will be of Rs 7.07 billion.
The Authority comprising of Chairman Nepra Waseem Mukhtar, Member (Technical) Sindh Rafique Ahmad Shaikh, Member (Tariff and Finance) Mathar Niaz Rana, Member KPK Maqsood Anwar Khan and Member (Law) Amina Ahmed officiated a hearing in this regard.
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NTDC, which is already under the cloud of massive corruption in award of contracts like 765-kV double circuit Dasu transmission line, has been fighting its case at Nepra for release of a huge withheld amount since long but no decision has yet been taken so far by the regulator. Now, the regulator has decided to hold a hearing on this issue during the second week of current month.
“NTDC’s financial impact of deductions has touched Rs 42 billion under the garb of constraints. Auditor is conveying adverse comments on finances of the company, due to which loans from local banks will be stopped,” he said, adding that if the auditor gives adverse report, NTDC would have no other option but to default,“ said Jamshid Iqbal Director General (Finance) NTDC.
NTDC representative further stated that international financing will also not be available as the federal government is not extending the GoP guarantees. He added that the regulator can order performance audit of the company to reach a conclusion but constraint matters must be de-linked with FCA hearing.
He further stated that the amount of Rs 42 billion is parked idle as on one hand consumers have consumed this electricity and on the other payments have been made to the IPPs.
Munawar Bhatti, another representative of NTDC gave different justification for connection of different plants with low voltage plants established as per the policy.
He said, Nepra has withheld amount for the last 50 months, and urged the authority to take a final decision even if it does not agree with the viewpoint of NTDC.
Commenting on the arguments of NTDC officials, Chairman Nepra said that this issue has been discussed on many occasions at the authority level and there is thinking that since NTDC is also a public sector company the issue should be sorted out. However, at the same time, the regulator cannot pass on incompetence of any entity to the consumers.
During the hearing, Chief Executive Officer (CEO), CPPA-G Rihan Akhtar briefed the authority that in September fuel cost and RLNG consumption remained as per reference.
Member (Finance) Nepra Mathar Niaz Rana raised the issue of lower despatch to imported coal-fired power plants and use of local coal, and queried when local coal price was lower, why generation from it was on the lower side.
CEO CPPA-G shared reasons for giving preference to RLNG plants instead of local including claims of some previous adjustments.
Nepra’s team also suggested deduction of Rs 285 million on account of system constraints and underutilisation of efficient power plants.
CEO CPPA-G further stated that since FCA pad in October 2023 was Rs 1.71 per unit, FCA to be charged in November 2023 will be paisa 55 per unit, and net relief to consumers will be Rs 1.16 per unit.
Copyright Business Recorder, 2023