Nepra increases tariff by Rs12.71 per unit

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ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has increased the tariff of NTDC (National Transmission Dispatch Company) by Rs12.71 per unit per month that will have an impact of Rs5 billion per annum to be paid by consumers.


The NTDC had demanded the raise in tariff by Rs48 per unit per month in the head of construction of transmission lines, repair and salaries of employees, the documents available with The News reveal. However, the electric power regulator increased the tariff by Rs12.71 per unit per month and the power consumers will in return have to pay Rs 5 billion per year. On the top of it, the regulator also allowed the increase in the limit of transmission losses from 2.5 to 3 percent.


However, during the hearing, the representative of the KESC severely opposed the increase in the benchmark of transmission line losses up to 3 percent. With this decision, the NTDC will be able to earn the profit of Rs21.13 billion.


The petitioner (NTDC) earlier stated that due to an increase in the new loans, for Rs12.407 billion financial charges have been requested for Rs7.262 billion for the FY 2012-13 against the actual financial charges for Rs6.419 billion for the FY 2011-12. New loans are required for the completion of ongoing projects as well as new projects under the PSDP and Annual Development Programme.


The NTDC submitted that the figure of 2.5pc for the “estimated T&T losses” was then based on the hypothesis that the NTDC system losses comprised 1/3rd of the total system losses for which a figure of 7.5pc was considered. However, as per the actual measurement of losses through accurate meters installed on cut-off/deliverypoints, the T&T losses varied from 2.04pc to 3.85pc during FY 2011-12.


It was stated that at present, all the energy received by the NTDC (CPPA) from Gencos and its onward transmission and delivery to discos was being measured at receiving points of NTDC and delivery points to discos by precision energy meters and the petitioner submitted that T&T loss occurred in transmission lines and transformers in operation.


The petitioner further submitted that whenever any addition of transmission lines or transformers as required by system loading is made, the transformers or conductors used have the same loss related parameters that were applicable prior to 2004. Any variation in the loss is due to location of a generating source supplying power to a distantly located load. While justifying the T&T losses, the petitioner stated that during the winter, hydel generation is less and all loads located in the north of the country are met from the south, which results in higher T&T loss while in summer when the hydel generation reaches the maximum, a reduced loss figure is recorded.


Therefore, there is no lapse or negligence on the part of the petitioner for variation in the loss, which has its own mechanism that is beyond the control of the petitioner, especially during the periods of energy crises when NTDC (NPCC) cannot follow/adhere to a regime based on economic load dispatching, as the location of load and location of generating station determine the load flow and the resultant loss.


The petitioner further submitted that the loss could be reduced only when additional parallel transmission lines and transformers are installed and the generation sources are located near the load centres, which requires a strategic change besides huge finances entailing thereby an additional increase in the petitioner’s tariff, and resultantly discos’ /consumers’ tariff will increase.


Except this, no reduction in the loss could be achieved by the petitioner under the prevailing situation. The petitioner prays to the authority for allowing the actual measured losses in 500kV and 220kV network of NTDC as has already been provided in its earlier determination of 2004.

Courtesy:   The News

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