ISLAMABAD-National Electric Power Regulatory Authority has allowed K-Electric to return Rs12.713 billion to its consumers on account of fuel charges adjustment (FCA) for the month of December 2022.
In its decision released here, NEPRA said that the reduction of Rs10.80 per unit in tariff will provide a relief of Rs12.713 billion to the KE’s consumers. In its petition, KE’s had sought reduction of Rs10.26 per unit on account of monthly fuel adjustment for December, however after making few adjustments the regulator has decided that the reduction will be Rs10.7984/unit. Regarding cost of energy purchased from CPPA-G during the current month, K-Electric has used the rate of Rs7.120/unit, however, the Authority’s approved fuel cost component, in the matter of XWDISCOs for the current month, is Rs.7.0027/unit. This has resulted in decrease in total fuel cost by around Rs.85 million.
The cost of BQPS-III has been worked out using an auxiliary of 2.047pc based on HHV combined cycle efficiency 6,381 BTU/kWh, at 100pc load. This has resulted in a total cost of Rs.1,422 million for operation of BQPS-III on RLNG in the current month, which is accordingly being allowed. The cost is being allowed strictly on provisional basis, subject to final determination of price etc.
The petitioner in its request had also included 2.41 GWh at the price of Rs.19.32/unit for the Net Metering units procured during December 2022. The Authority has considered this amount as part of the FCA for the month of December 2022. However, it is more appropriate that the amount be considered as part of the capacity cost instead of monthly FCAs. In view of the above, the Authority directed K-Electric to only include the unit of Net Metering in its monthly FCA and the cost thereof be included as part of capacity costs w.e.f. January 2023.
Regarding the financial impact due to underutilization of efficient plants namely KCCP, SGTPS & KGTPS on account of lower gas pressure, a letter was issued to KE on September 16, 2021, whereby, it was directed to resolve its gas pressure/lower gas quantity issues within thirty (30) days. In response, KE has informed that it is in the process of resolving the lower gas pressure issue, however, there are certain meetings with stakeholders that will take place in due course of time. Subsequently, K-Electric has shared details of communication with SSGC and Ministry of Energy (Petroleum Division) regarding the finalization of GSA.
However, during the FCA hearing for the month of January 2022, K-Electric’s representatives submitted that the draft GSA between KE and SSGC does not guarantee the gas pressure or quantity and the gas/RLNG will be available with KE on “As and When” available basis even after the GSA is signed. As of now, no GSA has been finalized between KE and SSGC despite the directions of the Authority.
It is pertinent to mention here that KE vide its FCA claim for December 2022 had requested for the release of Rs.546 million, withheld on account of EMO violations for the period from June 2021 to September 2022. As such, the claimed amount of Rs.546 million has been withheld from the FCA claim of KE for December 2022 until the issue is finalized. As per the decision, the negative FCA of December 2022 shall be applicable to all the consumer categories except lifeline consumers, domestic consumers consuming up-to 300 units, agriculture consumers and Electric Vehicle Charging Station (EVCS) consumers of K-Electric. It is hereby clarified that negative adjustment on account of monthly FCA is also applicable to the domestic consumers having Time of Use (ToU) meters irrespective cf their consumption level. K-Electric shall reflect the fuel charges adjustment in respect of December 2022, in the billing month of February 2023.