National Electric Power Regulatory Authority (Nepra) has issued notification of Rs 2.61 per unit refund for the consumers of power Distribution Companies (Discos) for October 2016 under monthly fuel adjustment mechanism. According to the notification, the Authority has gone through the information provided by CPPA-G seeking monthly fuel adjustment and due diligence is done accordingly.
From perusal of the information provided by CPPA-G, the actual pool fuel charge for the month of October 2016 is Rs 4.7414/kWh, against the reference fuel cost component of Rs 7.3369/kWh indicated in the Authority's determination pertaining to the ex-Wapda Discos for FY 2014-15.
The actual fuel charges for October 2016 was decreased by Rs 2.5955/kWh as compared to the reference fuel charges. The Authority observed from the data submitted by CPPA-G that Nandipur Power plant was not utilised and no energy was generated from it during October 2016. Upon inquiry, NPCC (NTDCL) submitted that the plant was on annual maintenance/ inspection.
The Authority noted that for the last few months the plant was not being fully utilised owing to annual inspection, therefore, it directed CPAA-G to provide a detailed response in this regard. The Authority in its FCA decision for September 2016 had directed NTDCL/NPCC and CPPA-G to provide a written response regarding operation of Block-I&II of KAPCO power plant on HSD, despite the fact that these blocks are tri-fuel plants, which can be run either on Gas/RLNG or RFO or HSD.
NPCC (NTDCL), in its letter of November 8, 2016 submitted that "it did not issue any despatch instruction in September for operation of these units on HSD. However it could be better replied by CPAA-G as to why HSD generation is shown in the data. (It may be due to some PPA provision)".
CPPA-G, in this regard, submitted during the hearing that KAPCO block-I & II were not run on HSD, rather block-III of KAPCO being a dual fuel plant ie gas/ RLNG and HSD, was run on HSD and its cost was charged to block-I & II, as per the PPA, since block-I&II are more efficient blocks. The Authority, in view thereof, has decided not to include the HSD cost, charged to block-I & II during the month of September and October 2016, amounting to around Rs 72 million, in its FCA working for the month of October 2016, till submission of detailed response from CPPA-G on the issue. CPPA-G is accordingly directed to submit its detailed response on the issue within seven working days.
The Authority further noted with that CPPA-G had purchased 12.253 GWh from TPS Quetta in October 2016 having a fuel cost of Rs 105.3758 million, which is not a licensee of Nepra. Accordingly, the Authority has decided not to include the energy as well as the fuel cost of the energy purchased from TPS Quetta in the total cost while working out the FCA of October 2016 and also directed CPPA-G to ensure compliance of its direction with respect to the generation license of TPS Quetta.
As per details provided by CPPA-G, 5.9 GWh were purchased by ex-Wapda Discos from small and captive power plants. 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 46.16 million; however, it worked out to be Rs 46.14 million as per Nepra approved rates. Accordingly for the instant adjustment, cost of Rs 46.14 million has been considered on account of fuel cost component of energy purchased from small and captive power plants.
CPPA-G reported NTDC transmission losses of 172.46 GWh ie 1.99 percent during October 2016, which are lower than the Authority's assessed transmission losses of three percent as per its determination dated 23.04.2015 for NTDC, notified vide SRO No 696(I) 2015 dated 23.07.2015. Accordingly, for calculation of FCA for October 2016, actual losses of 172.46 GWh ie 1.99 percent, being lower than the Authority assessed losses, have been taken into account for the purpose of current adjustment.