Nepra revises up transmission tariff to improve power infrastructure

KARACHI: The National Electric Power Regulatory Authority (Nepra) has approved a 2.4 percent increase in transmission tariff in retrospect effect to help the state-owned electricity transmitter ramp up revenue for improving power infrastructure, The News learnt on Saturday.

The Nepra fixed the wheeling charges at Rs151.89/kilowatt per month to be charged by the National Transmission and Dispatch Company (NTDC) from its customers for the last fiscal year of 2018/19, 2.4 percent higher than the last approved tariff.

Earlier, state-owned electricity transmission company demanded of the government an upward revision in tariff of wheeling charges to help it increase revenue stream.

NTDC approached the Nepra, seeking upward revision in wheeling charges for FY2018 and FY2019. According to an application, NTDC requested an increase of 15.14 percent in wheeling charges to Rs170.79/kilowatt per month for FY2018 and 25.7 percent to Rs186.48/kilowatt per month for FY2019 over the tariff of Rs148.33/kilowatt per month in FY2017.

Since FY2018 has already lapsed, the power regulatory authority has incorporated the impact of difference in the tariff determined and the tariff actually charged by the petitioner during the periods – FY2017 and FY2018 – in the assessed revenue requirement for the FY2018 as prior year adjustment.

The NTDC estimated its net revenue requirement at Rs43.27 billion for the fiscal year of 2017/18 and Rs46.05 billion for 2018/19. The transmission firm also sought permission to make up for un-covered cost for FY2016 and FY2017, including reversal of the impact of K-Electric loan adjustment on return on equity and the unrecovered cost for FY2015.

NTDC requested the Nepra to allow it claim for the recovery of all legitimate costs incurred during FY2016 and FY2017 in accordance with the Nepra Tariff Standard and Procedure Rules 1998 17(3)(i) to run the business.

The company also sought approval for an investment program of Rs46.428 billion for FY2018 and Rs49.815 billion for FY2019, respectively.

The NTDC, in its application, said the company added new grids/transmission lines to relieve overloading as well as augmentation of transformers. The NTDC implemented under frequency schemes, cross trip schemes, auto closer and tele protection scheme to improve system stability and reliability. The company also undertook rehabilitation of transmission lines/grid station equipment and replacement of poor quality insulators.

The Nepra advised the NTDC to submit it, on quarterly basis, the reports of investments and progress made against the investments in line with the tariff revision. The NTDC was also advised to ensure efficient and timely utilisation of loans and credits from development finance institutions. “The commitment charges due to non-utilisation within loan/credit period

will not be allowed,” the

Nepra said.