National Electric Power Regulatory Authority (Nepra) on Wednesday increased tariff of Distribution Companies (Discos) by Rs 1.57 per unit for October 2019 under monthly fuel price adjustment formula across the board except lifeline consumers.

On December 26, 2019 the Authority went through the information provided by CPPA-G seeking monthly fuel adjustment and due diligence was done accordingly. From perusal of the information so provided by CPPA-G, the actual pool fuel cost for the month of October 2019 was determined as Rs 5.4976/kWh, against the reference fuel cost component of Rs 3.7579/kWh as indicated in the Annexure-IV of the notified consumer-end tariff of Ex-Wapda Discos for the FY 2017-18. The actual fuel charges, as reported by CPPA-G, for the month of October 2019 increased by Rs 1.7397/kWh as compared to the reference fuel charges.

CPPA-G claimed an amount of Rs 3.535 billion on account of previous adjustments & supplemental charges of Rs 86 during the month of October 2019. Regarding adjustment of Rs 2.58 million for Port Qasim coal based power plant, pertaining to September 2018, CPPA-G provided its working in this regard, however, the said amount has already been allowed in September 2018, therefore, no further adjustment was required in this regard for the FCA of October 2019.

Regarding adjustment of Rs 2.842 billion claimed for QATPL (Bhikki), Haweli Bahadurshah (HBS) Balloki, Orient, Saif, Sapphire and Halmore Power Plant, CPPA-G provided its working. From the scrutiny of the provided information/data, the Authority observed that the cost already allowed for these plants has not been correctly accounted for by CPPA-G in its working. By taking into account the costs already allowed by the Authority for these plants, the adjustment worked out as Rs 1.40657 billion instead of Rs 2.84228 billion claimed by CPPA-G. Therefore, for the purpose of instant FCA for October 2019, amount Rs 1.40657 billion has been considered.

Regarding adjustment of Rs 144 million for JPCL on account of load correction factor, CPPA-G has submitted its workings. This will be considered once verified by the NEPRA's technical section. For the remaining previous adjustments and supplemental charges, the amounts claimed by CPPA-G have been considered while working out the FCA of October 2019.

As per the data submitted by CPPA-G, Discos purchased 13.067 GWh from Captive Power Plants (CPPs) during October 2019, 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 89.12 million. However, the cost as per the adjustment mechanism approved by the Authority for CPPs/NCPPs, worked out as Rs 89.08 million, which has been considered while working out the FCA of October 2019.

CPPA-G has reported negative energy from Anoud Textile new captive power plants, during October 2019, meaning thereby NCPP has drawn energy from the grid. The total energy drawn by NCPP during October 2019 was around 11,680 kWh, however, CPPA-G only reported a negative cost of Rs 79,424 @ Rs 6.80/kWh. In view thereof, an additional amount of Rs 0.231 million has been deducted from the total fuel cost of October 2019, based on the rates charged by CPPA-G for sale of electricity to IPPs, during this month.

The Authority after incorporating the adjustments, has allowed the remaining fuel cost, including costs arising out due to application of various factors as provided in the respective PPAs of the power producers, claimed by CPPA-G in the cost. However, at the same time, the Authority has decided that amount arising out of application of PPA factors, if any, for the six RFO based IPPs, incorporated under 2002 Power Policy, is allowed on provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing proceedings against the RFO based IPPs.