Monday December 11, 2023

Guddu power plant seeks Nepra nod for hike in tariff

September 29, 2023

ISLAMABAD: Guddu Thermal Power Plant (Genco-II) has asked the National Electric Power Regulatory Authority (Nepra) for permission to charge 1.5 times more than the regular combined-cycle tariff rates, as specified in the tariff from February 24, 2006, for their open-cycle power operations. This request is based on the heat rates that were already approved.

The Genco-II has filed a tariff modification petition to Nepra for open-cycle tariffs for its old blocks 1 and II.

It requested to approve the open cycle tariff for these blocks effective from February 24, 2006, and allow it to recover its costs associated with Open Cycle Generation, as directed by the National Power Control Center (NPCC) at various times, the petition said.

Guddu power plant is also known as Central Power Generation Company Limited (CPGCL) and was built in 1980s with the joint technical cooperation and financial assistance from the then Union of Soviet Socialist Republics (USSR).

It sought FCC tariff of 150 percent for Open Cycle operations on approved combined cycled tariff rates.

For Block-I, it sought Rs13.4394/KWh, and for Block-II Rs14.9321/KWh. The already approved combined cycle tariff rates were Rs8.9596/KWh and Rs9.9547/KWh respectively.

It also requested to maintain the gas tariff for the plant at Rs1,050/MMBtu for the open cycle, as was the same for combined cycled operations.

The company has submitted the modification application, along with relevant documents, to the authority under the Nepra (Tariff Standards & Procedure) Rules 1998.

The entity is a public limited company wholly owned by the government and incorporated on 26th of October 1998 for the purpose of taking over the properties, rights, assets, obligations, and liabilities of the thermal power stations located at Guddu, Sukkur, and Quetta, formerly owned by the Water and Power Development Authority (Wapda).

The total installed capacity at CPGCL's thermal power stations is 2,400 MW.

However, the net dependable capacity available for generation and purchase stands at 1,641 MW, following the decommissioning of units 1-4 in July 2019.

According to the petition, the authority's prior approval of open-cycle operations aimed to secure optimal grid flexibility for the petitioner, even during routine technical challenges.

These operations contributed electricity to the grid, and refusing an additional tariff would harm public finances and be unjust considering the petitioner's efforts.

The NPCC (System Operator) directed the petitioner's open-cycle operations, understanding the necessity due to routine maintenance work.