ISLAMABAD - National Electric Power Regulatory Authority (Nepra) has increased the levelled tariff for the combined cycle RLNG based power plants at Haveli Bahadur Shah and Balloki by Rs2.90 per kWh (45.18 per cent) and Rs4.2216 per kWh (65 per cent) respectively.

In its decision in the matter of tariff adjustments at commercial operation date (COD) of National Power Parks Management Company (Private) Ltd (NPPMCL), 1230.54 MW Haveli Bahadur Shah (HBS) and 1223.106 MW Balloki, Nepra has also increased the levelled tariff for HSD Rs6.002 per kWh (59.53 percent) for Haveli Bahadur Shah and Rs8.91 per kWh (88.285 percent) for Balloki.

Tariff for single Cycle (RLNG only) for Haveli Bahadur Shah was also increased 48.20 percent from Rs7.3895 per kWh to Rs10.9517 per unit.

As per the decision for HBS, the levelled tariff was increased to Rs9.3209 per KWh from earlier Rs6.4202/kWh, while for HSD it was increased to Rs16.0849 per KWh from the earlier Rs10.3394/kWh. For Baloki, the levelled tariff for RLNG was increased to Rs10.6500 kWh from the earlier Rs6.4284/kWh, while on HSD it is increased to Rs19.0032 per unit from Rs10.098 per kWh.

The authority determined and approved the following tariff and adjustments/indexations for the NPPMCL, its 1230.54 MW Power Plant on imported RLNG/HSD for delivery of electricity to the power purchaser. The reference cost of the project was $857.986 million against the assess cost of $783.951 million.

The levelled tariff for HSD also increased

Thereafter, the NPPMCL filed a petition to the authority on May 24, 2019 for modification of the generation tariff. Decision in the matter was issued on November 18, 2019 wherein the authority determined a levelled tariff of Rs.6.4202/kWh, US Cents 6.1145/kWh for RLNG and Rs10.3394/kWh and US Cents 9.8470/kWh for HSD subject to applicable adjustments/indexations.

Being aggrieved with the above decision, the NPPMCL filed a motion for leave for review in pursuance to Rule 16(6) of NEPRA Tariff (Standards & Procedure) Rules, 1998, on November 29, 2019.

Following one-time adjustments were provided by the authority in the reference tariff’s determination of the NPPMCL on August 09, 2016, November 18, 2019 and February 12, 2020: i) Adjustment of EPC Cost: ii) Adjustment for items outside the scope of the EPC Cost: iii) Adjustment of Non-EPC Cost items: iv) Adjustment for Customs Duties and Cess: v) LTSA Initial Spares Parts: vi) Adjustment for gas pipeline cost. vii) Adjustment of Escrow Account on the basis of revised RLNG Price and applicable GST: viii) Adjustment for Financing Fees & Charges: ix) Adjustment for Interest during construction: x) Adjustment of O&M components.

The authority approved the generation tariff for the NPPMCL for its combined cycle power project at Haveli Bahadur Shah on the basis of net power output of 1,215.176 MW on RLNG and 1,064.887 MW on HSD along with adjustments/indexations for delivery of electricity to the power purchaser. Total Tariff (Rs/kWh) Levelled Rs9.3209 per KWh for RLNG and High Speed Diesel Rs16.0849 per KWh.

Regarding Baloki, the petition said that pursuant to the relevant provisions of the Nepra act and the rules and regulations made there-under; NPPMCL filed Tariff Petition for approval of the reference generation tariff vide its letter dated April 22, 2016. The petition was processed in accordance with provisions of applicable law i.e NEPRA Act and Tariff (Standard & Procedure) Rules -1998. Having considered the submissions of the petitioner, comments of stakeholders, determination in the matter was issued on August 9, 2016 wherein, the authority determined a cost-plus levelled tariff of Rs6.4284/kWh, US Cents 6.1223/kWh for RLNG and Rs10.0928/kWh and US Cents 9.6122/kWh for HSD.

Thereafter, the NPPMCL filed a petition to the authority on May 24, 2019 for modification of the generation tariff. Decision in the matter was issued on November 19, 2019, wherein the Authority determined a levelled tariff of Rs6.4284/kWh, US Cents 6.1223/kWh for RLNG and Rs 10.2951/kWh and US Cents 9.8048/kWh for HSD subject to applicable adjustments/indexations.

Being aggrieved with the above decision, the NPPMCL filed a motion for leave for review in pursuance to Rule 16(6) of NEPRA Tariff (Standards & Procedure) Rules, 1998, on November 29, 2019.

Following one-time adjustments were provided by the authority in the reference tariff determinations of the NPPMCL on August 09, 2016, November 19, 2019 and February 12, 2020: i. EPC Cost: a) Offshore EPC Cost b) Onshore EPC Cost: ii) Items not covered in the EPC Agreement Scope: iii) Customs, Duties and Cess: iv) 0 & M mobilisation cost v. Security & Surveillance: vi) Administrative cost: vii) Gas pipeline cost: viii) Testing & Commissioning: ix) Escrow Account: x) Financing Fees and Charges: xi) Interest During Construction (IDC): xii) ROE component: xiii) O&M component: xiv) BoP Spares: xv) Additional Land. The NPPMCL attained its commercial operations date (COD) with effect from July 29, 2018. As per the determination, the NPPMCL submitted its request for adjustment of relevant components of its generation tariff vide letter dated December 10, 2019.

The NPPMCL was required to achieve COD on February 02, 2018 whereas actual COD was achieved on July 29, 2018 with delay of five months and 27 days. The NPPMCL further delayed its COD tariff adjustment request by filing in December 2019 after a time period of 16 months and 12 days. The authority considers that the request of NPPMCL to adjust post COD payable amounts at prevailing exchange rate of Rs155.70/US$ as claimed by the Petitioner is not justified

The Authority approved the generation tariff for National Power Parks Management Company (Private) Limited for its combined cycle power project at Balloki on the basis of net power output of 1,205.0460 MW on RLNG and 1,093.370 MW on HSD along with adjustments/indexations for delivery of electricity to the power purchaser.