ISLAMABAD: In a majority resolution, the Nationwide Electrical Energy Regulatory Authority (Nepra) on Thursday notified a rise of 84-paisa per unit enhance in electrical energy charges for ex-Wapda distribution firms (Discos) to generate about Rs12 billion extra income.
The rise was allowed on account of month-to-month gas value adjustment (FCA) for electrical energy consumed in July and could be charged to shoppers within the present billing month. The tariff enhance shall be relevant to all clients besides lifeline ie 50 items monthly.
The regulator had questioned the justification for furnace oil- and diesel-based costly energy technology throughout public listening to on September 1 and introduced that it might announce judgment after detailed evaluation of report and information as Discos demanded 86-paisa per unit enhance in electrical energy charges.
Apparently, Nepra case officers in the course of the listening to had offered 84-paisa per unit enhance. Nonetheless, because the opposition events criticised the tariff rise, the regulator issued an uncommon assertion saying “no decision of the authority on the subject matter has been made”.
Greater than a month later, the regulator notified precisely the identical 84-paisa per unit increase and but claimed that it was being performed on provisional foundation topic to verification. In its willpower, Nepra noticed that prima facie, sure energy crops “were not fully utilised and instead energy from costlier residual fuel oil and high-speed diesel-based power plants was generated to the tune of over Rs14bn (Rs11.95bn and Rs2.09bn, respectively).”
Nepra famous that had this power been generated from different sources like RLNG or coal, this may have resulted in discount in whole gas value claimed by the Central Energy Buying Company (CPPA). “In view thereof, the cost of furnace oil & HSD claimed by CPPA in the instant monthly fuel cost adjustment is being allowed only on provisional basis, subject to verification”.
The willpower repeated Nepra’s orders issued in the course of the public listening to final month to CPPA and Nationwide Energy Management Centre (NPCC) to “provide complete justification in this regard to the satisfaction of the authority and submit complete details for generation made on RFO/HSD, showing hourly generation along with the financial impact for deviation from economic merit order (EMO), if any, and the reasons thereof.”
This prompted the Nepra member from Sindh Rafique Ahmed Shaikh to contest the bulk resolution. In his detailed dissenting word, Mr Shaikh mentioned the non-utilization of the dearer energy crops was critical and inflicting big monetary losses which had additionally been confirmed by the monitoring and enforcement division in extra word.
He mentioned the NPCC and CPPA had been directed that any out of advantage energy plant despatch by the previous ought to be notified to the latter and Nepra instantly. The CPPA, being procurer of energy on behalf of Discos, was additionally required to completely scrutinize the technology information with month-to-month gas provide association and furnish a certificates that energy crops had been operated strictly following the advantage order.
In case any energy plant is operated in disregard to the advantage order, the CPPA has to quantify and confirm the industrial influence on the purchasers and submit a report back to the regulator. Shaikh famous with concern that instructions given to NPCC and CPPA weren’t being adopted. He questioned that Nepra in its resolution was passing on “the impact of losses on account of operation of costlier power plants in violation of EMO” to shoppers provisionally.
He noticed that this enhance mustn’t have been handed on to shoppers given the truth that CPPA had neither furnished the requisite certificates nor submitted industrial influence of operations of energy crops in violation of advantage order. Additionally, the CPPA and NPCC didn’t adjust to regulator’s orders and therefore the “consumers couldn’t be burdened on non-performing the duties of the entities”.
In its majority resolution of 3-1, the regulator conceded energy firms’ view that precise gas value labored out at Rs4.3796 per unit in opposition to a pre-determined reference value of Rs3.542. Thus, a rise of about 84 paisa per unit.
PPP lawmaker Nafeesa Shah criticised the tariff hike and demanded its quick withdrawal. She mentioned the federal government was penalising the folks by means of enhance in petrol, electrical energy, wheat flour, sugar and different important gadgets.
Complete power technology from all sources in July was recorded at 14,711GWh at Rs63bn, having a median per-unit gas value of Rs4.29. About 14,434GWh had been offered to the Discos for Rs63.56bn at common of Rs4.40 a unit. About 1.88computer items had been reported as transmission losses.
Revealed in Daybreak, October ninth, 2020