The National Electric Power Regulator (Nepra) has approved an increase of Rs 9.90 per unit due to monthly fuel charge adjustment (FCA) for electricity distribution companies.
In a statement, Nepra said the Central Power Purchasing Agency-Guarantee (CPPA-G) had requested an increase of Rs 9.9 per unit.
The authority had held a public hearing on July 28, 2022.
Earlier, power companies charged Rs 7.91 per unit to the monthly FCA account in May.
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Businesses will charge consumers Rs 1.99 per unit more in August than in May, Nepra said, adding that the increase will only apply to August bills.
This will apply to consumers of all electricity distribution companies, except for lifeline customers. This will also not apply to K-Electric consumers.
During the hearing, the National Transmission & Despatch Company (NTDC) explained how residual fuel oil (RFO) power plants work.
However, the authority observed that an internal analysis had also been carried out to determine the financial impact due to a deviation from the Economic Merit Order (EMO) – based on information submitted by the National Power Control Center (NPCC) — part of the NTDC.
According to internal analysis and work performed, the net deductible amount, on a provisional basis, of the aggregate claim due to deviation from EMO was Rs 84.9 million.
Its breakdown had a financial impact of Rs 73.86 million due to system constraints and Rs 11.04 million due to underutilization of efficient power plants.
In addition, the authority noted that some regasified liquefied natural gas (RLNG) power plants had been dispatched on merit to avoid pipeline problems on the Sui Northern Gas Pipelines Limited (SNGPL) network.
The wire harness issue was discussed in the hearing and NPCC was instructed to provide relevant information on it.
Based on the information submitted by the NPCC, the authority noted that the matter related to Department of Energy policy. Therefore, the matter required further deliberations.
However, for the FCA of June 2022, the authority has decided to withhold the financial impact of merit-based generation temporarily due to the line pack issue amounting to Rs 2.63 trillion.
He ordered the CPPA-G and NPCC to provide full information on the matter.
The Power Regulator has decided to deduct the above amounts in the current FCA on an interim basis until NPCC/NTDC and CPPA-G provide the required details and full rationale to the satisfaction of the Authority.
During the FCA hearing for the month of April 2022, the CPPA-G and the NPCC had agreed to revise the EMO list, published on their website, to exclude RFO, gas and RLNG plants, which did not supply no energy at CPPA-G. due to lack of fuel availability.
Nepra again directed CPPA-G and NPCC to ensure compliance.
In addition, the regulator also observed that the energy from the Attock Gen and Punjab thermal power plants exceeded joint meter readings by 59,126 kWh and 7,000 kWh, respectively.
As a result, excess energy. as well as the financial impact, was adjusted during the preparation of the monthly FCA of XWDISCO (ex-Wapda distribution companies) for June 2022.
In view of the discussion, the electricity regulator has calculated the cost of fuel for the month of June 2022, after taking into account the aforementioned adjustments, and including the costs resulting from the application of various factors, as provided for in respective Power Purchase Agreements (PPAs) of the Power Producers and asserted by CPPA-G in its FCA Application.
It is also relevant to mention that the amount resulting from the application of the PPP factors for the six independent power producers (IPPs) based on RFO, the Nepra FCA for XWDISCO for the month of June 2022 incorporated under the policy of 2002, is to be authorized on a provisional basis. They will be subject to adjustment depending on the final outcome of the ongoing suo moto proceedings against RFO-based IPPs.
The NTDC reported interim transmission and transformation (T&T) losses of 338.609 GWh – 2.669% based on power delivered to its system in June 2022.
The NTDC also reported T&T losses of 28.657 GWh – 2.868% for the Pak Matiari-Lahore Transmission Company (PMLTC) high voltage direct current line.