ISLAMABAD: In a significant development, the National Electricity Regulatory Authority (NEPRA) has refused to include the fixed cost and cross-subsidy sought in wheeling charges by Disco and CPPA, which has helped the country’s industrial sector grow at a lower cost of electricity. The way will be smooth.
With this decision, wheel charges for bulk electricity consumers will be Rs 1,50-2 per unit. This decision will strengthen the whaling government, which is a prerequisite for the development of the energy market in Pakistan.
NEPRA has decided to include wheeling costs in the disclosure of disco revenue under the annual and multi-year tariff regime (FY 2018-19 and FY 2019-20). The CPPA (Central Power Purchase Agency) is providing electricity to bulk power consumers (PBCs) at Rs 14-15 per unit, but NEPRA has refused to include the stagnant costs and subsidies in the wheeling charges. Later, any powerhouse can sell its electricity at Rs. 8-9 per unit to its bulk consumers
The Authority noted that the imposition of stagnant costs and cross-subsidies to date would not only discourage the whaling government in Pakistan but also discourage discos from improving their performance in terms of reducing T&D losses. Will get, and even less will suffer. Improving its performance to increase new connections and receipts and promote healthy competition and put pressure on discos, the authority decided not to include any compensation in terms of costs and cross-subsidies stuck in wheeling charges.
The Authority has also notified the Federal Government for notification in the Official Gazette under Section 31 (7) of the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997.
The Central Power Purchase Agency (CPPA) has stated that stranded asset costs and cross-subsidy charges are related costs that need to be included in the wheel-charging charges and if these issues are properly considered in the existing wheel system. If left unmanaged, they can be left astray and lose the right path.
The CPPA had requested in its petition that for LESCO, the effect of avoiding cross-subsidy would be 8.874 / kWh for peak consumption and from 11.07 / kWh to 13.89 / kWh for large consumer crosses. Provide subsidies.
In addition, at the pool level, the need for cross-subsidy for the current year is Rs 250 billion and will increase to Rs 371 billion in the financial year 2024-25. And referring to the trapped cost, CPPA in its application with NEPRA had submitted that the resultant financial impact on the 11-KV and 132-KV customers in terms of trapped cost was 3.79 / kg respectively. 5.66 / kWh and Rs. 8.55 / kW to 14.11 / kW for Hesco.
The CPPA also suggested that if the total energy sales due to wheeling decreased by 1 pc, as a result of the current financial impact on the disco, their customers will have a fiscal year 2020-21. 14 billion for. However, NEPRA declined to offer CPPA and Disco.