Nepra slams KE, NTDC over Rs786.4mln loss

KARACHI: National Electric Power Regulatory Authority (NEPRA) will periodically monitor the licensees as the National Transmission & Dispatch Company (NTDC) and K-Electric (KE) caused a cumulative loss of Rs786.4 million in 2015-16, the regulator said on Thursday.

“Due to improper utilisation of resources by NTDC, 87 loss-of-supply incidents occurred, which resulted in a loss of Rs724 million during the reported period,” the NEPRA said in Performance Evaluation Report of NTDC & KE for FY2015-16.

“K-Electric contributed a loss of Rs624 million to the national exchequer due to 10 loss-of-supply incidents that occurred during the reported period.”

The report added that to gauge system security measurements, the estimates of total ‘energy not served’ (ENS) during the year as reported by KE was analysed.

“The total ENS as reported by the KE is 4.808 million kWh. On the basis of average sale rate of the KE, the financial impact of 4.808 million kWh amounts to approximately Rs62.4 million,” the Nepra report added.

Similarly, it said, the total ENS as reported by NTDC was 143 million kWh.

“Based on the energy transportation charges of NTDC and average energy sale rate of CPPA-G, the financial impact amounts to around Rs724 million,” the report added.

The report said the system voltage data as submitted by K-Electric was also analysed, which revealed the number of voltage variations’ violating criteria had been reduced to 18 as compared to 38 of preceding year.

The duration of interruption in the KE system during the year 2015-16 remained at around 1.47 hours, which is lower over the previous year by 6.96 percent, it said.

It added that likewise, the system frequency of interruption remained at the same level as of previous year i.e., 0.32 times that indicates zero improvement.

The power sector regulator in its report noted the improvement as claimed by the KE pertaining to system reliability was contrary to the ground realities.

“The needs to improve its reporting mechanism on realistic basis,” Nepra said.

The Nepra has also advised the KE to improve its functions of planning, operation, protection, augmentation and expansions and rehabilitation as per requirement of the grid code, to avoid breakdowns and ensure the continuity of supply to its consumers.

The regulator also advised the NTDC to concentrate on utilising its repair and maintenance funds in its weak areas.

“It is the need of time that the NTDC make network expansions in a way so that it can meet the upcoming power projects in future and submit the progress report to the authority on quarterly basis,” Nepra said in the report.