NTDC asked to give Rs49.8bln spending breakups

KARACHI: The National Electric Power Regulatory Authority (Nepra) sought breakups of Rs49.8 billion earmarked for spending by the National Transmission and Dispatch Company (NTDC) on its various projects during the fiscal year of 2016/17, a government official said on Thursday.

The official said Nepra advised NTDC to provide project-wise spending details, segregating the cost and time overrun, of the amount, which the authority allowed for NTDC to invest during 2016/17.

The demand stemmed from the NTDC’s latest request for an approval to its investment program of Rs49.815 billion for 2018/19.

The power regulator also sought details of the impact of past investment and addition of coal /regasified liquefied natural gas power in the load centers. It also sought details of the central planning framework being used to ensure that new investment would ease out existing and future transmission constraints.

The official said the authority wants to know what progress has been made in view of huge investment claim along with the completion time of the projects. It is also eager to learn what has been done to mobilise resources from the private sector under the transmission policy 2015.

The power generation sector has witnessed a major transformation over the last five years. It moved towards a reliable supply system through large base-load power plants using indigenous and imported coal and through highly efficient gas-based plants.

An energy ministry’s document showed that electricity generation capacity surged to 29,573 megawatts till February from 22,812 megawatts in 2012/13 as the previous government implemented strategies to cope up with the challenges of energy security.

There has been a 30 percent growth in the installed power generation capacity during the last five years due to energy mix diversification. Share of re-gasified liquefied natural gas in the country’s energy mix surged to 24.3 percent in March from eight percent in the corresponding month a year earlier as the country’s reliance on the furnace oil-substitute is increasing.

The official document showed that a significant improvement has been seen in recovery of dues after decline in transmission and distribution losses. Average bill recovery remained above 90 percent during the last five years.

The addition of power generation facilities has emboldened the need for a strong transmission and distribution infrastructure to make the delivery of electricity to consumers. The NTDC requested a transmission tariff of Rs170.79/kW (kilowatt)/month for 2017/18 and Rs186.48/kW/month for 2018/19. In a petition submitted before the Nepra, the NTDC proposed the transmission tariff based on the revenue requirements of the state-owned company, which are estimated at Rs43.89 billion for 2017/18 and Rs50.326 billion for 2018/19.

Nepra decided to hold a hearing on the matter on November 28 to finalise the decision.

The regulator also advised NTDC to provide details of the steps taken by the company for power evacuation from upcoming renewable energy projects as well as measures taken in the last two years to reduce losses.