KP demands exemption from power tariff hike

Matiari-Lahore HVDC transmission line

Islamabad - Khyber Pakhtunkhwa has opposed the NEPRA decision of allowing charging 0.71 rupee per unit wheeling charges by NTDC, for 878-km Matiari-Lahore high-voltage direct current (HVDC) transmission line, from the KP consumers and pleaded the authority to withdraw its decision.

“If the authority wants to put the burden of 71 paisas per unit on our consumers then NTDC should be directed to give 14.82% of proposed 4000MW power to KP,” KP representative argued in a NEPRA hearing on the revised petition of NTDC for increase in wheeling charges for the electricity tariff for Matiari-Lahore high-voltage direct current (HVDC) transmission line. The KP’s representative termed the NEPRA’s decision to put burden of Re0.71 per kWhr on KP consumers as harsh and requested the authority to withdraw its decision.

In a NEPRA hearing on the revised petition of NTDC, the KP proposed to make two tiers of electricity customers. Tier-I should consist of the customers taking benefits from the proposed transmission line and should be charged the wheeling charges, while Tier-II should consist of the consumers not getting electricity from it and should not be burdened with the extra charge. Representative of the Sindh government also supported the KP stand on the issue.

NTDC has proposed tariff of Rs180.75/kW/month for FY2015-16 & Rs220.05 kW/month for FY 2016-17, for 600 KV HVDC Transmission Line.

The provincial representative criticised NTDC for ignoring KP. He requested that this petition by NTDC and previous decision of NEPRA be set aside till completion of deliberations with NTDCL.

In August, the NEPRA granted Re 0.71/ unit (kWh) electricity tariff to 878-km Matiari-Lahore high-voltage direct current (HVDC) transmission line. Matiari-Lahore line will evacuate more than 4000 megawatts of coal-based electricity from projects in Sindh. Although this Re 0.7/unit will be charged on these 4000MWs transportation, however the end consumers will pay the amount in their bills for the coming 25 years.

The projects which will be connected with Matiari switching stations for power transmission through this HVDC transmission line include Engro Thar Unit I & II (660MWs), Thar Coal Block-1(Shangai) (1320MWs), Port Qasim (1320MWs) and Hub Power at Port Qasim (1320MWs).

Now, in the revised petition, NTDC wants to increase the wheeling charges. The provincial representative termed the project cost of $2.1 billion as ‘abnormal’ and claimed that the cost should be not more than $1 billion. To rationalize the cost, the province has recommended carrying out feasability study by international firms.

“Fixed charges demand of Rs180.75 per kW/month for FY 2015-16 and Rs220.05 for FY 2016-17 is without any justification and may not be approved,” the KP representative requested. He also asked for the reduction of NEPRA’s approved fixed charges of Rs126.75 per kW/month for FY 2015-16.

 

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