Monthly FCA: Nepra raises the tariffs of electricity distributors

ISLAMABAD: The National Electric Power Regulatory Authority (NEPRA) has increased the tariff for Electricity Distribution Companies (Discos) by Rs 2.87 per unit for March 2022 and the tariff for K-Electric (KE) of Rs 1.3863 per unit for February 2022 under the monthly Fuel Charges Adjustment Mechanism (FCA).

According to DISCOS determination, CPPA-G applied for a positive FCA of Rs.3.1574/kWh, having an impact of Rs.32 billion.

The Authority held a hearing on this subject on April 27, 2022, which was attended by officials of the organizations concerned.

NPCC/NTDC during the hearing, explained the operation of power plants on RFO; however, the Authority observed that an internal analysis was also performed to determine the financial impact due to a deviation from EMO based on information submitted by NPCC. According to internal analysis, the net amount deductible on a provisional basis of the aggregate claim due to deviation from EMO due to underutilization of efficient power plants is Rs 9 million. The Authority has decided to provisionally deduct this amount in the current FCA, until such time as NPCC/NTDC and CPPA-G provide the required details and a full justification in this regard is submitted to the Authority’s satisfaction.

Further, in reviewing FCA’s claim, the Authority observed that partial load was supplied to Balloki and QATPL power stations on HSD operations even during forced outages and dispatch failure (FADL), which is a failure/failure of said power supply. producers. The Authority is of the view that part load can only be supplied if the plant is available, but NPCC ships it part load due to system requirements. Similarly, partial load cannot be supplied if the factory fails to meet the NPCC-ordered shipment. So; an amount of 4.115 million rupees (3.745 million rupees for QATPL and 0.37 million rupees for Balloki) for the month of January 2022 has been deducted as partial load charges in FCA of March 2022.

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After verification of the data, the Authority approved a positive FCA of Rs.2.8680/kWh, having an impact of around Rs.29 billion. The March 2022 FCA will be billed in the May 2022 billing month to all categories of nightclub consumers except lifeline consumers. This FCA would only remain applicable for one month. This FCA does not apply to KE consumers.

K-Electric FCA for February 2022: The Authority has approved an FCA of Rs 1.3863/kWh for February having an impact of Rs 1.586 billion against the request of Rs 3.452 kWh having an impact of Rs 3.950 billion. The positive adjustment will be recovered in the invoices of May 2022. The FCA will be applicable to all categories of consumers except vital consumers.

In the hearing of April 4, 2022 regarding the cost of energy purchased from CPPA-G during the month of February 2022, K-Electric used the tariff of Rs. 12.4614/kWh; however, the fuel cost element approved by the Discos Authority for the month of February 2022 was Rs. 9.1046/kWh. In view of this, in developing K-Electric’s Snapshot FCA, the Nightclub Authority approved tariff for February 2022 was incorporated for energy purchased by K-Electric from CPPA-G in February 2022. This resulted in a decrease in total fuel cost of about Rs 2.315 billion.

The Authority has carried out an internal analysis of the data provided by K-Electric for the month of February 2022, in order to determine the financial impact due to the deviation from OM. Instances and events have been shared with K-Electric to provide clarification/justification, and K-Electric has been asked about the reasons for this.

Regarding the financial impact due to the underutilization of efficient plants due to lower gas pressure, a letter was sent to KE on September 16, 2021, in which it was directed to resolve its gas pressure problems/lower gas quantity within thirty days.

In response, KE informed that he was in the process of resolving the lower gas pressure issue; however, some meetings with stakeholders will take place in due course. Subsequently, K-Electric shared details of communication with the SSGC and the Department of Energy (Petroleum Division) regarding the finalization of the GSA.

However, at the FCA meeting, K-Electric representatives argued that GSA’s draft between KE and SSGC does not guarantee the pressure or quantity of gas and that gas/RLNG will be available with KE over time. and as available even after GSA. is signed.

Copyright Business Recorder, 2022

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