Islamabad   -   The National Electric Power Regulatory Authority (Nepra) on Thursday allowed ex-Wapda power distribution companies (Discos) an increase of Rs0.8376 per unit in power tariff on account of monthly fuel price adjustment for July 2020.

Central Power Purchasing Agency (CPPA) had proposed an increase of Rs0.86per unit, under fuel price adjustment for the month of July 2020 for Ex-Wapda Discos. The CPPA in its petition said, it had charged consumers a reference fuel tariff of Rs3.5420 per unit in July while the actual pool fuel cost turned out to be Rs4.4035/kWh. Hence, it should be allowed to charge Rs0.8615 per unit additional cost from consumers next month. 

In its detail judgment issued by Nepra here, stated that, during the hearing, Authority also observed that, certain efficient power plants were not fully utilised and instead energy from costlier RFO & HSD based power plants was generated to the tune of over Rs14.043 billion (Rs11.953 billion from RFO and Rs2.09 billion) from HSD based power plants, for the month of July 2020. The Authority noted that, had this energy been generated from other sources like RLNG or Coal, this would have resulted in reduction in total fuel cost claimed by CPPA-G. In view thereof, the cost of furnace oil & HSD claimed by CPPA-G in the instant monthly FCA is being allowed only on provisional basis, subject to its verification by the Authority. Accordingly, both CPPA & NPCC are hereby directed 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 EMO, if any, and the reasons, thereof.

The Authority after incorporating the aforementioned adjustments, has allowed the fuel cost, including costs arising out due to application of various factors as provided in the respective PPAs of the Power Producers and claimed by CPPA-G in its monthly FCAs. However, the amount arising out of application of above PPA factors, for the six RFO based IPPs, incorporated under 2002 Power Policy, is being allowed on provisional basis and shall be subject to adjustment, based on the final outcome of the ongoing sue moto proceedings against the RFO based lPPs.

Here it is pertinent to mention that units sold to Discos as reported by CPPA-G are higher compared to units sold to DISCOs worked out on the basis of T&T losses verified for NTDCL, the FCA has been worked out based on the units sold to DISCOs as reported by CPPA -G. Similarly the CPPA-G claimed an amount of Rs568 million on account of previous adjustments & supplemental charges of Rs370.49 million during the month of July 2020.

Regarding Adjustment of Rs241.89 million, Rs157.85 million and Rs168.70 million for QATPL, Haveli Bahadur Shah and Balloki respectively, CPPA-G provided its working in this regard. From the scrutiny of the provided information/data, the Authority observed that the cost already allowed for these plants, has not been correctly accounted for by CPPA-G in its working. By taking into account the costs already allowed by the Authority for these plants, the adjustment works out as Rs165.73 million, Rs143.35 million and Rs155.72 million for QATPL, Haveli Bahadur Shah and Balloki respectively.

For the remaining previous adjustments and supplemental charges, the amounts claimed by CPPA-G have been considered. Therefore, for the purpose of instant FCA for July 2020, amount Rs835.29 million has been considered. As per the data submitted by CPPA-G, x-DlSCOs purchased 13.067 GWh from Captive Power Plants (CPPs) during July 2020, for which CPPA-G provided actual details of energy purchased from these plants. According to the details provided by CPPA-G, the actual Fuel cost of this energy is Rs197.47 million. However, the same as per the adjustment mechanism approved by the Authority for CPPs/NCPPs, works out as Rs197.42 million, which has been considered while working out the ICA of July 2020. The consumers will be charged for the increased amount in the monthly bills for October.