National Electric Power Regulatory Authority (Nepra) has approved Rs 1.16 per unit hike in electricity tariffs of power Distribution Companies (Discos) for August 2018 to collect Rs 16 billion from consumers under monthly fuel price adjustment mechanism. The decision was taken at a public hearing by a two-member team of Nepra comprising Vice Chairman Saif Ullah Chatha and Rehmatullah Baloch.
The seat of Khyber Pakhtunkhwa (KP) is vacant after retirement of Hamayat Ullah, the key advocate of hydel power generation. Central Power Purchasing Agency Guaranteed (CPPA-G) had sought supplemental charges/previous adjustments of Rs 7.6405 billion which were later revised to 6.744 billion but Nepra allowed adjustments of only Rs 2.436 billion of which Rs 631 million was for JPCL against demand of Rs 2.142 billion, Rs 594 million for QATPL against claimed amount of Rs 2.073 billion, Rs 210 million for Hawali Bahadar Shah against claims of Rs 622 million, Rs 429 million for Balloki power project against claimed amount of Rs 1.087 billion, Rs 349 million for Port Qasim coal power project against claims of Rs 354 million and Rs 223 million for Orient power project against claimed amount of Rs 266 million.
However, Nepra did not allow adjustments for Sahiwal coal power project on the plea that no documentary evidence had been received from CPPA-G so far. However, an official from NTDC claimed that documents were shared with the Authority one month ago. Vice Chairman Nepra directed the officials of CPPA-G and Nepra to sit together and sort out this issue.
Chief Executive Officer (CEO), CPPA-G, Rehan Akhtar argued that documents shared with the Authority were duly verified, and requested the Authority to approve adjustments as any delay in approval will further fuel the sky rocketing circular debt.
Nepra's team informed the Authority that as per notified determinations of July 27, 2017, NTDCL is allowed Technical and Transmission (T&T) losses of 2.80 percent only at 500KV and 220KV network. CPPA-G claimed losses of Rs 2.67 percent whereas the data provided by NTDCL shows T&T losses of 367.97 GWh i.e. 2.98 percent during August 2018.
According to Nepra, reported cumulative losses till August 2019 worked out at 2.98 percent which are higher than the allowed threshold of 2.80 percent. Accordingly, for working out the FCA for August 2018, losses up to 2.80 percent have been considered while calculating FCA of August 2018.
The impact of fuel price variance in August 2018 on generation has been calculated at Rs 20.245 billion details of which are as follows: (i) coal - Rs 3.777 billion; (ii) HSD - Rs 32 million; (iii) RFO - Rs 7.062 billion; (iv) gas - Rs 2.900 billion;(v) RLNG - Rs 11.621 billion;(vi) nuclear - Rs 230 million; (vii) import Iran - Rs 230 million; (viii) mixed - Rs 193 million; and (ix) baggasse - Rs 35 million.