Nepra allows six discos to raise power tariffs

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (August 06 2009): The National Electric Power Regulatory Authority (Nepra) has authorised six discos to increase their power tariffs, ranging from 26 paisa to 49 paisa per unit, but refused to annex mark-up with the tariff on delayed payment to IPPs. Quetta Electric Supply Company (Qesco) and Gujranwala Electric Power Company (Gepco), however, have been asked to reduce their tariff by Rs 1.54 per unit and 0.02 paisa per unit respectively.

The regulator has given determinations for discos under the monthly tariff adjustment formula at a time when the whole nation is passing through 'hell' in the absence of electricity.

According to details, the Authority considered Fesco's request for monthly adjustment of power purchase price (PPP) variation for the month of April 2009 pursuant to paragraph II of the order of the Authority of August 23, 2008. According to the information/evidence placed before the Authority the actual PPP for the month of April 2009, charged to Fesco by Central Power Purchasing Agency (CPPA) was Rs 6.1915/kWh.

The Authority observed that in April 2009 CPPA charged a substantial amount of Rs 2.685 billion in energy charge and Rs 683 million in the capacity charge on account of previous month's adjustment. According to the information provided by CPPA the major component of this adjustment pertain to mark-up on delayed payment to IPPs which was Rs 2.495 billion in energy charge and Rs 413.24 million in capacity charge.

The Authority considers that the mark-up on delayed payment to IPPs is not covered under monthly power purchase price adjustment mechanism and needs to be considered separately. The Authority has, therefore, decided not to allow Rs 2.908 billion on account of mark-up on delayed payment to IPPs.

The Authority directed CPPA to revise the invoices for the month of April 2009 accordingly. After excluding the impact of mark-up on delayed payment, the actual PPP has been worked out Rs 5.7253/kWh, which was Rs 02757/kWh higher than the reference PPP of Rs 5.4496/kWh.

After incorporating the impact of target distribution losses of 11.23 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 0.32. This adjustment shall apply to all consumer categories except lifeline residential consumers.

In case of Gepco, the Authority observed that in April 2009 CPPA charged a substantial amount of Rs 2.685 billion in energy charge and Rs 683 million in the capacity charge on account of previous months' adjustment. According to the information provided by CPPA, the major component of this adjustment pertain to mark-up on delayed payment to IPPs which was Rs 2.495 billion in energy charge and Rs 413.24 million in capacity charge.

The Authority considers that the mark-up on delayed payment to IPPs is not covered under monthly power purchase price adjustment mechanism and needs to be considered separately. The Authority has, therefore, decided not to allow Rs 2.908 billion on account of mark-up on delayed payment to IPPs. After excluding the impact of mark-up on delayed payment, the actual PPP has been worked out Rs 5.7831/kWh, which is Rs 0.0139/kWh lower than the reference PPP of Rs 5.7970/kWh.

After incorporating the impact of target distribution losses of 11.25 percent the required downward per unit adjustment in the determined tariff has been assessed as Rs 0.02. This adjustment will apply to all consumer categories except lifeline residential and agricultural consumers.

While considering the petition of Hesco, the Authority observed that in April 2009 CPPA charged a substantial amount of Rs 2.685 billion in energy charge and Rs 683 million in the capacity charge on account of previous months' adjustment. According to the information provided by CPPA, the major component of this adjustment pertain to mark-up on delayed payment to IPPs which was Rs 2.495 billion in energy charge and Rs 413.24 million in capacity charge.

The Authority considers that the mark-up on delayed payment to IPPs is not covered under monthly power purchase price adjustment mechanism and needs to be considered separately. The Authority has, therefore, decided not to allow Rs 2.908 billion on account of mark-up on delayed payment to IPPs.

After excluding the impact of mark-up on delayed payment, the actual PPP has been worked out Rs 5.6852/kWh, which is Rs 0.2438/kWh higher than the reference PPP of Rs 5.4414/kWh. After incorporating the impact of target distribution losses of 34 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 0.38.

This adjustment shall apply to all consumer categories except lifeline residential consumers. In case of Iesco, according to information/evidence placed before the Authority, the actual PPP for the month of April 2009, charged to Iesco by CPPA was Rs 6.1705/kWh. The authority observed that in April 2009 CPPA charged a substantial amount of Rs 2.685 billion in energy charge and Rs 683 million in the capacity charge on account of previous months' adjustment.

According to the information provided by CPPA, the major component of this adjustment pertains to was Rs 2.495 billion in energy charge and Rs 413.24 million in capacity charge. The Authority considers that the mark-up on delayed payment to IPPs is not covered under monthly power purchase price adjustment mechanism and needs to be considered separately.

The Authority has, therefore, decided not to allow Rs 2.908 billion on account of mark-up on delayed payment to IPPs. After excluding the impact of mark-up on delayed payment, the actual PPP has been worked out Rs 5.7051/kWh, which is Rs 0.2565/kWh higher than the reference PPP of Rs 5.4486/kWh.

After incorporating the impact of target distribution losses of 11 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 029. This adjustment shall apply to all consumer categories except lifeline residential consumers.

LESCO: The Authority after excluding the impact of mark-up on delayed payment, said the actual PPP has been worked out Rs 5.6274/kWh, which is Rs 0.2274/kWh higher than the reference PPP of Rs 5.4000/kWh. After incorporating the impact of target distribution losses of 12.30 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 0.26. The adjustment shall apply to all consumer categories except lifeline residential consumers.

MESCO: The Authority after excluding the impact of mark-up on delayed payment, said the actual PPP has been worked out Rs 5.5803/kWh, which is Rs 0.2170/kWh higher than the reference PPP of Rs 5.3633/kWh. After incorporating the impact of target distribution losses of 17.50 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 0.27. The adjustment shall apply to all consumer categories except lifeline residential consumers.

PESCO: The Authority after excluding the impact of mark-up on delayed payment, said the actual PPP has been worked out Rs 5.6691/kWh, which is Rs 0.3081/kWh higher than the reference PPP of Rs 5.3610/kWh. After incorporating the impact of target distribution losses of 33.20 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 0.49. The adjustment shall apply to all consumer categories except lifeline residential consumers.

QESCO: The Authority after excluding the impact of mark-up on delayed payment, said the actual PPP has been worked out Rs 5.2962/kWh, which is Rs 0.3142/kWh higher than the reference PPP of Rs 5.6104/kWh. After incorporating the impact of target distribution losses of 20.50 percent, the required upward per unit adjustment in the determined tariff has been assessed as Rs 1.54. The adjustment shall apply to all consumer categories except lifeline residential consumers.

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