Senate Standing Committee on Power has asked National Electric Power Regulatory Authority (Nepra) to put capacity payment of Independent Power Producers (IPPs) on ice as Rs 1.2 trillion were paid as capacity payment during 2023. Official documents available with Business Recorder reveal that the committee, in its previous meeting, also took serious notice of recent increase in electricity tariff and asked Power Division to give an update on it. Naveed Qaiser, Manager, CPPA-G briefed the Committee in detail about category-wise electricity rates with Quarterly Adjustments (QTAs), Fuel Charges Adjustments (FCA) and Debt Servicing Surcharge (DSS).
He educated the Board of trustees that public normal regarding Jan 2022 was Rs. 21.55 which expanded to Rs 30.55 per unit in Walk 2023. The significant part in base rate is the age cost which incorporates half limit charges paid to various IPPs. The Executive Board of trustees enquired whether government has any arrangement to stop the limit charges to be paid to IPPs as it is the principal justification for the expansion in per unit cost.
The Council was educated that Nepra decides the limit charges to be paid to IPPs. The Director Panel expressed that according to preparation of CPPA-G, the age cost incorporates half of the limit charges paid to IPPs, adding that the IPPs should be bound to the way that fuel isn’t accessible in overflow in this nation and they may not get the limit installment during energy emergency keeping in view the ongoing expansion in the country, also.
The Administrator CPPA-G educated the Board of trustees that limit installment regarding not many IPPs was frozen after discussions with them. The Administrator Council recommended that limit installment of IPPs might be placed on freeze. The region is in an energy emergency and IPPs may not take these installments. He got some information about the separation of power rates from Jan, 2022 till Walk 2023.
The Board prescribed CPPA-G to give the separation sheet of power rates in Jan 22 till Walk 23. The Supervisor CPPA-G further advised the Panel exhaustively about rebasing of power rates by Nepra. In FY 23 (rebase), the units got were 128 billion though 113 billion units were sold. The permitted T&D misfortune is 11.70 percent. The delegate of Nepra likewise advised the Board of trustees that Discos’ misfortunes range from 8% to 32 percent.
Administrator Council enquired whether burglary of power is likewise remembered for misfortunes. The Advisory group was educated that misfortunes far beyond Nepra’s objective likewise incorporate burglary. Executive Council prescribed Power Division to sit with all Discos and make an arrangement to check robbery of power and Kunda (snares) associations.
The Director Board of trustees looked for subtleties of all out solicitations sent by CPPA-G during the most recent three years to Nepra and the sum deducted based on those solicitations. The delegate of Nepra informed the Council that Nepra has deducted Rs 1.2 billion of solicitations sent by CPPA-G in most recent three years and limit installment paid to IPPs is Rs 1.2 trillion out of 2023. The Executive Board proposed Nepra not to give those misfortunes to customers for which Discos’ authorities are mindful.
The Standing Board of trustees contended that Power Division and Nepra ought to diminish misfortunes, prescribing Influence Division to make a move against those Discos and authorities who are engaged with robbery of power in their areas. After itemized consultations, the Council collectively chose and prescribed CPPA-G to give month-wise subtleties of IPPs laid out in Pakistan such a long ways alongside limit installment paid to them in organized structure. The Board additionally prescribed Nepra to quit paying limit installment to IPPs. It prescribed Power Division to give the subtleties connected with arrangement of free power units to all workers of Discos, GENCOs, NTDC and different divisions connected with energy area and their usage.
