ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Thursday directed K-Electric to reimburse electricity consumers Rs 0.7591 per unit of electricity in their February 2022 bills, as the company had charged more in November 2021 . The actual fuel cost was for power generation.
It should be noted that changes in fuel prices, production and power purchase mix are passed along with some annual adjustments, in line with the mechanism laid down in KE's multi-year tariffs. According to a notification issued by the regulator, K-Electric will refund this amount to its power consumers on account of Monthly Fuel Cost Adjustment (FCA).
The regulator said the decision would be applicable to all consumer categories except lifeline consumers, domestic consumers consuming up to 300 units and K-Electric's agricultural consumers, as they are already getting subsidy on electricity consumption.
The notification also said: "It is clarified that the negative adjustment on account of monthly FCA is also applicable to those domestic consumers who have Time of Use (TOU) meters irrespective of their level of consumption."
It further said that if the incremental industrial and winter stimulus package comes into force in K-Electric, the amount of negative FCA allowed to such consumers will be adjusted in subsequent adjustments to K-Electric.
Nepra took this decision after a public hearing on January 3, 2022. During the hearing, K-Electric stated that it has entered into a Power Purchase Agency Agreement (PPAA) with CPPA-G for 2050 MW, however, the National Transmission and Dispatch Company (NTDC) is not ready to give a firm commitment of 2050 MW. and the matter will be decided in the Cabinet Committee on Energy (CCOE).
On inquiry about Bin Qasim Power Station 3 (BQPS-III), K-Electric submitted that the first unit would be online in the month of January and the second unit of BQPS-III would be commissioned in the month of June.
The regulator noted that the power purchase agreement was signed between National Transmission and Despatch Company Limited (NTDCL) and K-Electric on January 26, 2010 for sale and purchase of 650 MW at basket rates for five years.
Subsequently, a decision was taken by the Council of Common Interest (CCI) in its meeting held on November 8, 2012 with regard to the modalities for withdrawal of power from NTDCL by the petitioner, wherein it was decided to reduce the supply. 300 MW of power from NTDCL to K-Electric. However, the above decision of the CCI has been challenged through suits and petitions by K-Electric in the Sindh High Court in Karachi. There is no new agreement between K-Electric and NTDCL till date and K-Electric is continuously drawing power from the National Grid, which is currently around 1100 MW.
When asked by the regulator regarding the signing of the Gas Supply Agreement (GSA) with Sui Southern Gas Company (SSGC), K-Electric submitted that a meeting in this regard was held in the presence of the Ministry of Power (Petroleum Division). SSGC, which was followed by another meeting with SSGC.
K-Electric further said that they have suggested the legacy issues to be parked and go ahead, however, the SSGC wants to resolve all the issues together, including the previous ones.
K-Electric also referred to the minutes of the meeting held in October 2020 in this regard. Responding to the regulator's query regarding impact on consumers due to non-signing of GSA, K-Electric said there is no impact on consumers as the available gas is being fully utilized. The regulator observed that if there was a GSA, the SSGC would be bound to provide the committed quantity as per the required gas pressure, and in case of failure, Liquefied Damage (LD) would be levied on the SSGC.
With regard to the terms of the GSA, K-Electric submitted that SSGC is not providing any specific quantity, and it will only supply gas based on availability, unless SSGC makes necessary investments in its network. nobody will. Improve gas pressure. Nepra directed K-Electric to share the submissions in writing to SSGC regarding GSA.