Monday, December 11, 2023

NEPRA allows Rs1.95 unit tariff hike

The National Electric Power Regulatory Authority (Nepra) approved a rate increase of Rs1.95 per unit of electricity on Friday, allowing power distribution companies to recoup a total of Rs30.4 billion in revenue from electricity users.

The rise in rate due to a fuel cost adjustment was allowed by the regulator for implementation in August 2021.

It was in response to a request by the Central Power Purchasing Agency-Guarantee (CPPA-G), which sought a rate increase of Rs2.0719 per kilowatt-hour (kWh), with a total impact on consumers of Rs32.30 billion.

In a public hearing held on September 30, 2021, the National Electric Power Regulatory Commission granted a positive fuel cost adjustment of Rs1.9539 per kWh with a total impact of approximately Rs30.4 billion.

According to the final outcome of the ongoing suo motu procedures against residual fuel oil-based independent power plants, the tariff rise may be reduced or eliminated altogether (IPPs).

On the basis of the energy transferred to its system in August 2021, the National Transmission and Despatch Company (NTDC) reported provisional transmission and distribution (T&D) losses of 448.852 gigawatt-hours (GWh), or 2.862 percent, according to the company’s estimates.

The National Thermal Power Development Corporation (NTDC) recorded total and direct losses (T&D losses) of 28.864 GWh for the Pak Matiari-Lahore Transmission Line Company (PMLTC) high-voltage direct-current (HVDC) transmission line.

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T&D losses of 442.24 GWh (2.665 percent) were validated for the NTDC system in August 2021, based on the units delivered over the 500-kilovolt and 220-kilovolt networks.

When calculating the fuel cost adjustment for August 2021, the claimed T&D losses of 28.864 GWh (3.05 percent) for PMLTC were taken into account, as long as they fell within the limits set by Nepra.

To ensure that essential adjustments were implemented in a timely way, Nepra asked CPPA-G to deliver technically and financially verified data of each power production firm for the preceding month together with its next monthly fuel cost adjustment request.

DISCOs that were previously affiliated with Wapda will recover the fuel cost adjustment for August 2021 in the billing month of October 2021 from all consumer categories, with the exception of those who are connected to a lifeline.

The change will be in effect for one month only, and it will not apply to K-Electric customers who use their electricity.

When certain adjustments were taken into consideration, Nepra calculated the fuel cost for August 2021, which included the cost that arose as a result of the application of various factors as stipulated in the respective power purchase agreements (PPAs) of power producers and claimed by CPPA-G in its fuel cost adjustment request.

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